JOHANNESBURG, Feb 5: The South Africa Reserve Bank on Thursday slashed its benchmark interest rate by a full point to 10.5 per cent, following a half-point cut in December, and said inflation was headed downward.

Lower global oil prices helped push South Africa’s inflation back into single digits in December, when it was recorded at 9.5 per cent.

Central bank governor Tito Mboweni said inflation was expected to fall even lower in January, when the national statistics agency adjusts the basket of goods used for its calculations.

Mboweni said that he had urged the Monetary Policy Committee (MPC) to make an even deeper cut of 2.0 percentage points.

“I went in there guns blazing for a 200 basis point but they -- the MPC -- would not be persuaded,” Mboweni told a press conference.

“Some risks to the inflation outlook remain and the MPC had to assess these conflicting risks against the backdrop of a highly uncertain and volatile international environment,” Mboweni said.

Mboweni said the bank expected lower global commodities prices to help ease inflation, especially as oil prices have been around $45 a barrel, greatly reducing fuel and transport costs.—AFP