The cut in SA's repo rate made by the SA Reserve Bank on Thursday was "the right thing to do, Standard Chartered Bank said.

"Given the slowdown in growth, in South Africa and globally, the receding risks to higher inflation at least in the near term, and the inappropriateness of the previous monetary policy stance, this was absolutely the right thing to have done," said Razia Khan, Regional Head of Research Africa.

The key focus was now going to be the pace of the SARB easing cycle that was now underway, she added.

The SARB's inflation forecasts, seeing CPI average 6.2 percent in 2009, were "more optimistic than anything we have seen previously," Khan said.

With inflation dropping to just above the targeted level in 2009, and back within the target in 2010, as far as the SARB was concerned, this was likely to provide a green light for an accelerated pace of monetary easing, Khan added.

The revelation that a rate cut of 100 basis points was discussed at the meeting, with two MPC members in favour of a more aggressive move, suggested that interest rate easing would now be front-loaded.

"The economy needs it, the bond market will be cheered by it, and the rand is expected to benefit as a result."