Rand was slightly firmer early on Thursday, as investors awaited the outcome of a central bank monetary policy meeting later in the day. Picture: Steve Buissinne/Pixabay
Rand was slightly firmer early on Thursday, as investors awaited the outcome of a central bank monetary policy meeting later in the day. Picture: Steve Buissinne/Pixabay

Rand firms on Thursday ahead of SA Reserve Bank's repo rate decision

By Reuters Time of article published Nov 18, 2021

Share this article:

Rand was slightly firmer early on Thursday, as investors awaited the outcome of a South African Reserve Bank (SARB) monetary policy meeting later in the day.

At 0615 GMT, the rand traded at 15.4700 against the dollar, 0.1 percent firmer than its previous close.

SARB will announce its last repo rate decision for the year at around 1300 GMT.

There was no consensus on the outcome, as a Reuters poll showed economists were split, with 13 predicting the rate will remain unchanged at 3.5 percent and seven expecting a 25 basis point increase.

"Markets are trading erratically, as there is no clear consensus view ahead of this event, price action and liquidity are likely to be tested," Nedbank analysts said in a note.

SARB slashed rates by 300 basis points last year to a record low as the economy battled the coronavirus crisis. But there has been a modest pickup in inflationary pressures in the second half of this year.

The SARB's inflation target band is 3 percent - 6 percent. Statistics agency data showed on Wednesday that annual consumer inflation stayed at 5.0 percent in October, the same level as in September.

Government bonds were also firmer in early deals, with the yield on the 2030 maturity down 2 basis points to 9.445 percent.

REUTERS

Share this article: