South Africa Eyes ECB Repo Lines Amid Interest Rate Strategy

South Africa aims to leverage new European Central Bank repo lines if available, with interest rates having room to decrease further, according to central bank head Lesetja Kganyago. The ECB is making repo lines cheaper to boost the euro's role. Meanwhile, South Africa monitors inflation with planned rate adjustments.

South Africa is poised to tap into European Central Bank repo lines if they become available, according to central bank head Lesetja Kganyago. His statement follows the ECB's recent move to make these liquidity lines more accessible, aiming to strengthen the euro's global standing.

In an interview in Coventry, England, Kganyago emphasized the repo lines' potential benefits for South Africa's trade with Europe. This comes amid anticipation of further interest rate cuts, with South African rates currently at 6.75% and plans for additional reductions as inflation slows.

Kganyago also remarked on the geopolitical landscape, noting emerging markets' desire for financial system autonomy, while maintaining that the U.S. dollar remains dominant. Discussions on such topics are expected at the upcoming BRICS summit, hosted by India.

(With inputs from agencies.)