South Africa's central bank struck a measured tone after its first rate cut in more than four years on Thursday, saying although inflation had fallen faster than expected there were still risks to the outlook.

“The Sarb [South African Reserve Bank] is likely to mirror this rate path, with cuts expected at the end of the month and continuing through next year. Projections suggest the repo rate will bottom out between 6.25% and 6.75%,” he said.

The South African Reserve Bank Governor Lesetja Kganyago announced that the interest rates have been cut by 25 basis points to 8%, which did not impress many.

Overindebted consumers breathed a sigh of relief as the Reserve Bank decided to but the repo rate after 16 months of no change.

South Africa's central bank lowered its benchmark interest rate by 25 basis points to 8%, marking the first rate cut in over four years. This move follows the U.S. Federal Reserve's 50 basis-point reduction the previous day and reflects expectations of further global financial easing.

SARB cut its main benchmark rate by a quarter percentage point to 8%.

South Africans can loosen their belt a tiny bit this month as the SARB has decided finally to cut the interest rate.