The rand continued its winning ways on Monday morning as it powered through the R12.35/$ level for the first time since July 2015 The stronger local currency, which helps to keep inflation in check, has fuelled talk of a possible cut in interest rates later in the year. Rand Merchant Bank (RMB) currency strategist John Cairns expected the central bank to cut rates at least twice in 2017 — in May and September. The Reserve Bank’s monetary policy committee will be closely monitored this week against this backdrop. The Bank is widely expected to keep the repurchase rate on hold on Thursday, but is likely to revise down its inflation forecast for 2017, which currently hovers around 6.4%. The latest bout of the rand strength has been partly traced to a weaker dollar, which is reeling from the expectation that the Federal Reserve will increase US rates gradually this year. The rand has gained about 6% against the greenback over the past two weeks, although part of the rally was due to upb...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.