World Markets

South Africa's rand firmer ahead of interest rate decision

Credit: REUTERS/MIKE HUTCHINGS

South Africa's 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.

JOHANNESBURG, Sept 23 (Reuters) - South Africa's 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 ZAR= traded at 14.7300 against the dollar, 0.4% firmer than its previous close.

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

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

"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 ZAR2030= was up 1.5 basis points to 9.1% in early deals.

(Reporting by Olivia Kumwenda-Mtambo; editing by Jason Neely)

((Olivia.Kumwenda@thomsonreuters.com; +27 10 346 1084;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest World Markets Videos

China Plans to Ban Foreign IPO Loophole

Dec 01, 2021

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More