JOHANNESBURG - The South African rand oscillated in anticipation of the US FOMC meeting, which was widely anticipated to result in a rate cut, while on the local front traders awaited today’s repo rate decision against a backdrop of a weakening fiscal position, downside risk to merchandise trade and volatile geopolitical and global trade outlook according to NKC Research.
Our forecast concurs with the consensus for a Sarb decision to maintain the repo rate at 6.5 percent. On the local data front, the August inflation release outpaced expectations, further cementing expectations for a hold, although it remains comfortably at the lower end of the target range of between 3 percent and 6 percent. At the close of local trade, the rand quoted 0.3 percent stronger at R14.64/$, after trading in range of R14.61/$ - R14.70/$. The rand traded weaker overnight after the Fed cut US interest rates by 25 bps. Expected range today R14.60/$ - R14.90/$.
South African bourse
The JSE All Share (-1.19 percent) ended lower yesterday, dragged by large technology (-3.25 percent) and consumer (-3.81 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.24 percent) traded higher.
Brent crude oil