South Africa Rate-Cut Bets Rise After Inflation Eases

Inflation in South Africa slowed down more than expected in August.

This made traders think the South African Reserve Bank might lower interest rates.

Experts were surprised by the drop, as most predicted inflation to rise.

Lower inflation in food and fuel played a key role.

The central bank has a target range for inflation, and recent data might influence their decision on future interest rates.

Average inflation expectations have also decreased, which is a factor in decision making.