The rand firmed early on Thursday, as traders awaited the outcome of a central bank monetary policy meeting later in the day, where the regulator is expected to leave its benchmark lending rate unchanged. (AP Photo/Denis Farrell)
The rand firmed early on Thursday, as traders awaited the outcome of a central bank monetary policy meeting later in the day, where the regulator is expected to leave its benchmark lending rate unchanged. (AP Photo/Denis Farrell)

Rand firmer ahead of SARB interest rate decision

By Reuters Time of article published Sep 23, 2021

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The rand firmed early on Thursday, as traders awaited the outcome of a central bank monetary policy meeting later in the day, where the regulator is expected to leave its benchmark lending rate unchanged.

At 0643 GMT, the rand traded at 14.7300 against the dollar, 0.4 percent firmer than its previous close.

Data on Wednesday showing consumer price inflation in August rose to 4.9 percent did little to change market expectations that the South African Reserve Bank (SARB) monetary policy committee (MPC) will keep the benchmark rate at 3.5 percent.

The consumer price inflation remained within the central bank's target rate of 3-6 percent.

"Policymakers are unlikely to be overly concerned by the latest inflation reading and will stay focused on supporting the economic recovery. After all, the rise in the headline rate was driven by temporary factors, and core inflation remains very soft," said Virág Fórizs, Africa economist at Capital Economics.

In fixed income, the yield on the government bond due in 2030 was up 1.5 basis points to 9.1 percent in early deals.

REUTERS

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