The South African rand was largely unchanged on Wednesday after inflation data came in slightly below expectations, with markets now turning their attention to the South African Reserve Bank’s interest rate announcement on Thursday.
By 14:08 GMT, the rand traded at 17.16 per dollar, nearly flat compared to its previous close.
Data from Statistics South Africa showed that headline consumer inflation rose to 3.6% year-on-year in October, just under the 3.7% forecast by economists polled by Reuters. The softer-than-expected increase has left analysts divided over whether the central bank will move ahead with a rate cut.
“The slight uptick in October’s CPI technically provides the South African Reserve Bank with the space to cut rates by 25 basis points tomorrow,” said Lindi Geldenhuys of Econometrix.
However, other analysts urged caution. Zain Vawda, market analyst at OANDA’s MarketPulse, warned that inflation risks remain tilted upward. “I do expect inflation to settle, but when this will occur depends on trade and tariff developments in the coming weeks,” he said.
Additional data showed retail sales rising 3.1% year-on-year in September, signaling resilience in consumer spending.
On the Johannesburg Stock Exchange, the Top-40 index was up 1.2%, while yields on South Africa’s benchmark 2035 government bond eased to 8.66%, with the price moving slightly higher.
