South Africa's central bank cut its main lending rate by another 25 basis points to 7.50% as expected on Thursday, saying that while inflation appeared well-contained the medium-term outlook was more uncertain than usual.

SARB Governor Lesetja Kganyago on Thursday announced that the central bank will cut the repo rate by 25 basis points, meaning rates will drop by 0. 25%.

Inflation came in lower than expected for December, with another interest rate cut next week now seen as likely.

South Africa's headline consumer inflation rose less than expected in December, to 3.0% year on year from 2.9% in November, data from the statistics agency showed on Wednesday. In month-on-month terms inflation was at 0.