Traders have significantly increased their expectations for a South African Reserve Bank rate cut this month, following signs of global disinflation, particularly in the US. South Africa’s five-year breakeven inflation rate decreased to 4.65%, the lowest since December 2021 and close to the central bank’s 4.5% target. Market odds for a 25 bps rate cut at the July central bank meeting have risen to 40% from 20% the previous day.