South Africa begins loosening cycle

The South African Reserve Bank has cut its key rate from a five-year high and indicated it has room to ease further in the coming months.

The Reserve Bank's half-point cut on Thursday leaves the benchmark repurchase rate at 11.5%.

Tito Mboweni, the governor of the Reserve Bank, said that improvements in the inflation outlook warranted the move.

"With an unchanged stance of monetary policy, inflation is expected to continue its downward trajectory, and to return to within the inflation target