SA's rand held at a five-month high against the dollar on Friday - at R14.51 against the dollar, and looked set for a weekly gain after the central bank raised the repo rate, citing inflation risks linked to the Ukraine crisis. Moneyweb Currency
South Africa’s rand held at a five-month high against the dollar on Friday and looked set for a weekly gain, after the central bank raised the repo rate, citing inflation risks linked to the Ukraine crisis. At 0610 GMT, the rand traded at R14.51 against the dollar, largely unchanged from previous close and trading at levels last touched in October 2021. On Thursday, the South African Reserve Bank raised its main lending rate by 25 basis points to 4.
The outcome and the hawkish tone in the statement were in line with analysts and markets’ expectations, Carmen Nel, an economist and macro strategist at Matrix Fund Managers, said in a note. “However, there were some surprises. The fact that two of the five Monetary Policy Committee members voted for a 50bp increase… while a pause was not discussed suggest that a 50bp hike at one of the following meetings has become a distinct possibility,” Nel said.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
JSE firms as rand holds steady before Reserve Bank’s interest-rate announcementThe rand is at its highest level since late October, cushioned by higher commodity prices
Read more »
JSE slightly weaker, rand steady at a five-month highAll share and top 40 slide after Reserve Bank’s third consecutive 25 basis point hike
Read more »
Bigger interest rate hikes are coming: economistThe South African Reserve Bank’s (SARB’s) decision to hike interest rates by 25 basis points to 4.25% on Thursday (24 march) came as little surprise, but commentary surrounding the increase indicates that steeper hikes could be on the way, says Jeff Schultz, senior economist at BNP Paribas South Africa.
Read more »
Reserve Bank’s wary tone prepares SA for bigger rate hikesPolicy tightens for third time, while two out of five MPC members want rise of 50 basis points
Read more »
South African Reserve Bank hikes ratesThe South African Reserve Bank’s Monetary Policy Committee (MPC) has decided to raise the repo rate to 4.25% per annum.
Read more »