The Sarb lowered the repo rate by 25 basis points to 8%, as predicted by economists polled by Reuters.
South Africas headline consumer inflation came in at 4.4% year-on-year in August, just below the 4.5% midpoint of the target range the central bank aims for.
The rate cut follows the US Federal Reserves decision on Wednesday to begin lowering rates and makes South Africa the latest emerging market to embark on an easing cycle after early movers in Latin America and Central Europe.
Prior to Thursdays cut, the Sarb had kept the repo rate unchanged at seven policy meetings in a row. Before that it raised rates 10 times consecutively.
For much of the past three years, annual inflation has been near the top of the central banks target band or above it, averaging 5.9% in 2023 and 6.9% in 2022. But it dropped sharply in July and further in August.
