Many economists say the Reserve Bank is likely to cut interest rates by 25 basis points on Thursday.

The bank’s Monetary Policy Committee is currently meeting in Pretoria.

Halen Bothma of ETM Analytics says the cut is possible because of the strong rand recovery after the African National Congress National Elective Conference.

The rand has continued to rally as political tensions ease. Forward markets are pricing in a 56 percent chance of a 25 basis points cut to benchmark rates, with the probability of a cut by the same margin in March at more than 90%.

Governor Lesetja Kganyago will make the rate announcement afternoon on the day.

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