Rand firms ahead of central bank rate decision

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Rand firms ahead of central bank rate decision
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[CURRENCY] At 12:00, the rand traded at R18.11 against the dollar, ahead of a central bank interest rate decision later in the day. Moneyweb Currency

The rand firmed in early trade on Thursday, ahead of a central bank interest rate decision later in the day. The South African Reserve Bank is due to announce its latest monetary policy move at a news conference starting around 3 pm, with investors expecting a 25-basis-point increase.

“Market focus is likely to rest on the statement and the projections with the new rate outlook,” Elisabeth Andreae, FX analyst at Commerzbank, said in a research note, adding that the hike is largely priced in by markets. Statistics South Africa data showed last week that February inflation rose to 7.0% year on year from 6.9% in January, remaining above the bank’s target of between 3% and 6%.

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