The rand was steady in late afternoon trade on Wednesday, keeping within a tight range ahead of the Reserve Bank’s rate decision on Thursday. Consensus is for the Bank to leave the repo rate unchanged at 7%, but a surprise cut could weaken the rand as it would narrow the relative yield between local and international bonds. Better-than-expected consumer inflation and retail sales data released on Wednesday sparked talk of a possible rate cut. "The data strengthened our view that the Bank would cut rates further and faster than most expect, with the first cut coming at its meeting tomorrow," said Capital Economics analyst John Ashbourne. Absa Consultants and Actuaries analyst Kwaku Koranteng said falling inflation, as well as the expectation that it would remain within the Reserve Bank’s target range of 3%-6% for the next year, did support a rate cut. "But concerns about local currency risks due to unfolding political and socioeconomic developments would likely influence the Bank to ...
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