Rand stable as Bank keeps rates unchanged
However, Reserve Bank governor Lesetja Kganyago warned the rand remained a key risk for further depreciation
The rand was stable in afternoon trade on Thursday after the Reserve Bank left the repo rate unchanged at 7%, as expected. Governor Lesetja Kganyago said it was likely that the Bank was at the end of the tightening cycle. "A reduction in rates would be possible should inflation continue to surprise on the downside." Kganyago warned the rand remained a key risk for further depreciation. While the longer-term forecast trajectory for inflation was unchanged, it remained uncomfortably close to the upper end of the 3%-6% target range. The rand showed little movement before and during Kganyago’s reading of the monetary policy statement. At 3.06pm the rand was at R12.8905/$, weakening slightly to R12.9164/$ at the conclusion of the address. At 3.38pm the rand was at R12.8929 against the dollar from R12.8957. It was at R14.4585 to the euro from R14.4618 and at R16.7082 against the pound from R16.7098. The euro was unchanged at $1.1214. The Bank marginally improved the inflation outlook over...
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