South Africa's central bank lowered its key policy rate by 50 basis points on Thursday.

The Monetary Policy Committee decided to slash the repurchase rate to 6% from 6.5%. The decision came in line with economists' expectations. The bank had lowered the rate by 50 basis points in March. The bank's monetary policy committee assessed that the domestic inflation has moderated to lower-than-expected levels, and it is anticipated that it will remain within the target range for the rest of the forecast period.

South African economy expanded at slower pace in the second quarter. The gross domestic product grew 3.2% annually in the second quarter, slower than a 4.6% growth in the previous quarter. Annual consumer price inflation eased to 3.7% in July.