The South African rand experienced a slight decline on Thursday as investors awaited the South African Reserve Bank’s (SARB) interest rate decision. By 0622 GMT, the rand was trading at 17.45 against the US dollar, marking a 0.3% drop from its previous close. Economists surveyed by Reuters anticipate that the central bank will maintain its benchmark lending rate at 7.00%, despite a surprising slowdown in headline inflation for August, driven by lower fuel and food prices. Independent economist Elize Kruger noted that while the August inflation data aligns with the SARB’s target of 3%, elevated inflation expectations and a projected rise to 4.2% by December 2025 are likely to deter any rate cuts. However, some analysts suggest that the softer inflation figures could prompt a closely contested decision. Meanwhile, South Africa’s benchmark 2035 government bond remained stable in early trading, with yields edging up by half a basis point to 9.175%. The market remains watchful as the SARB’s announcement could influence future economic trajectories.