SA central bank cut its main interest rate on Thursday for the first time in more than four years. Before that, it raised rates 10 times consecutively.

The high interest rates, inflationary pressures and regular power blackouts have taken a toll on SA banks' most sensitive retail and small business customers, leading to defaults and a squeeze on loan growth.

Group Chief Executive Fani Titi told reporters on a call that interest rate cuts should encourage the bank's clients to take on more lending products and companies could start investing more.

"Generally we expect to see less pressure on clients and customers and as a consequence, over the next 12 or so months we'd expect to see impairments start to unwind pretty significantly," Titi said.

The bank, which also operates in the United Kingdom, said in a statement that the overall credit quality in the five months to August 30 remained strong, in line with the position at the end of its last financial year that ended in March 2024, with no evidence of trend deterioration.

--Reuters--