The rand was little moved on Monday morning, but retained its hefty gains from last week in price action that underscored the local currency’s volatility. The rand was back below the R13/$ mark, after weakening to R13.63/$ early last week. The outcome of the Reserve Bank’s monetary policy committee meeting later in the week may provide some direction in a short term, although the dollar’s movement will also be monitored. The market expects the committee to keep the repurchase rate on hold at 7% on Thursday, but governor Lesetja Kganyago’s commentary will be closely scrutinised for clues on the future interest rates path. The committee’s meeting comes against the backdrop of increased volatility in the value of the rand, which plays a key role in shaping the inflation outlook. Statistics SA will release inflation figures on Wednesday, with analysts expecting headline inflation to have moderated to an annual rate of 5.2% in June, from 5.4% in May. The Bank is under pressure to lower r...
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