For now, the inflation and interest rate outlook are the brightest they have been for years, testimony to the SA Reserve Bank's relentless focus on inflation. That is something to raise a glass to.

The Monetary Policy Committee (MPC) of the South African Reserve Bank cut its repo rate by 25 basis points on Thursday, bringing it to 7.75% and the prime lending rate to 11.25% - a move triggered by a brightening inflation outlook that could perhaps herald a lower target range.

Following a 25-basis-point cut in September, it all adds up to a 50-basis-point decrease over the past two months, bringing some relief to South African households and consumers in time for the festive season. And economists are forecasting another 50-basis-point reduction in the first half of 2025.

"South Africa's housing market is poised for a much-needed recovery following the latest interest rate cut," Standard Bank said in a statement. "The September rate cut sparked positive sentiment, with data from Standard Bank indicating an uptick in home loan applications and new home loan approvals."

The Reserve Bank is laser-focused on inflation and its aim has been the mid-point of its mandated 3% to 6% target range. In October, consumer inflation slowed to 2.8% year on year, its lowest level in over four years, which raised hopes in some quarters that...