South Africa’s recent economic data signals a potential downturn, making it likely for the South African central bank to cut interest rates. A significant decline in July’s business activity saw the broader economy’s PMI nearing a two-year low. While the country avoided a technical recession, its economic growth has slowed, primarily due to electricity cuts and transport disruptions. However, easing price pressures from the July PMI data hint that the bank might not return to its earlier hawkish stance, contrasting Governor Kganyago’s previous comments post the last MPC meeting.