Rand remains in firmer territory following Reserve Bank’s decision on rates
Despite weakening overnight, the rand firmed on Friday morning as the euro maintained a firmer bias to the dollar. Reserve Bank governor Lesetja Kganyago, in his post-monetary policy committee meeting speech, announced that interest rates would remain on hold for the time being. Kganyago conceded that inflation had moderated, but said the outlook for economic growth had deteriorated. Consumer inflation has been slowing steadily in 2017, after spending the better part of 2018 outside the Bank’s 3%-6% target band. Moderating food inflation has been an important factor, as most of the regions hit by a severe drought have experienced some relief. "With further ratings decisions imminent, risks remain for a further depreciation against the backdrop of continued global and domestic political uncertainty," Kganyago said. The euro continues to remain firmer to the dollar as US President Donald Trump’s economic reforms, promised during his campaign, fail to gain traction. The euro is up 6.5%...
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