Rand strengthens after Bank keeps rates on hold
Reserve Bank keeps the repo rate at 7% but revises its inflation rate upwards
The rand was stronger against leading currencies on Tuesday afternoon after the Reserve Bank kept the repo rate unchanged at 7%. The Bank said its inflation outlook had deteriorated. It now expected headline inflation to average of 6.2% for 2017, versus the 5.8% it forecast previously, and to return to its 3%-6% target range in the fourth quarter. Bank governor Lesetja Kganyago pointed to changed in its outlook on international oil prices, domestic fuel prices and food prices. Kganyago said the bank expected growth to have averaged 0.4 % in 2016, although recent monthly data for the fourth quarter suggested a downside risk to this forecast. Dow Jones Newswires report that sterling came under pressure after the UK Supreme Court ruled on Tuesday that triggering the Brexit required parliamentary approval. At 3.29pm‚ the rand was R13.3487 to the dollar from Monday’s R13.4724. It was R14.3506 to the euro from R14.5061 and R16.6173 to the pound from R16.8940. The euro was at $1.0749 from ...
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