The rand was firmer on Wednesday afternoon, after local consumer inflation came in slightly better than expected. The annual rate of consumer inflation rose to 4.8% in August from 4.6% in July against expectations of a 4.9% rise. On a monthly basis, inflation increased by 0.1%, less than market expectations of an increase of 0.2%. The inflation data could be supportive of a rate cut by the Reserve Bank’s monetary policy committee, with an announcement due on Thursday. Market consensus is for a cut of 25 basis points. Old Mutual Investment Group senior economist Johann Els said the Bank was likely to cut the repo rate again this week, by 25 basis points, bringing it down to 6.5%, with a further two 25 basis-point cuts to occur in this cycle. He added, however, that the Bank was likely to be cautious, due to political uncertainty. The key global event this week, however, remains the US Federal Reserve interest-rate decision, due on Wednesday night at 8pm South African time, which coul...
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