South African rand gains ahead of cenbank’s rate decision

South African rand
RAND_800x500

The South African rand gained ground in early trading on Thursday before the central bank made a significant interest rate decision in light of rising inflation.

At 6:07 UTC, the rand was trading at 18.7850 dollars per dollar, which was almost 0.6% higher than where it had closed the previous session.

In the most recent trade, the dollar’s value was around 0.3% lower against a basket of world currencies.

According to statistics released by Statistics South Africa on Wednesday, headline consumer inflation (ZACPIY=ECI) increased to 5.9% year-on-year in October from 5.4% in September. This puts inflation very close to the upper end of the goal range of 3% to 6% that the central bank has set for itself.

Later in the day, investors will be paying attention to the South African Reserve Bank’s (SARB) main interest rate decision as well as the tone of the SARB’s Monetary Policy Committee about the future path of rates (ZAREPO=ECI) and (ZAPRIM=ECI).

According to analysts surveyed by Reuters, the interest rate is expected to remain at 8.25%, which would be its highest level since 2009.

“Let’s watch how the statement is worded, how the projections turn out, and how the vote breaks down. In a morning briefing, experts from Rand Merchant Bank speculated that the South African Reserve Bank (SARB) would only change course after the Federal Reserve.

The benchmark South African government bond for 2030 remained unchanged at 10.140% in early trades.

TRENDING

Related Posts