Rand strengthens after soft inflation figures, amid mild Zimbabwean relief rally
The rand was firmer against major global currencies shortly before midday on Wednesday, tracking a stronger euro, and following the release of inflation data for October.Statistics SA’s consumer price index for October rose 4.8% year-on-year, in line with market expectations. However, core inflation was slightly lower than expected, at 4.5% compared with a Trading Economics forecast of 4.6%.Softening core price pressures may temper expectations in the market for any interest rate increase in the next few months, said Capital Economics analysts, but with inflation set to rise in November after an increase in oil prices, the tone of Thursday’s Reserve Bank meeting was likely to be hawkish.The Bank was widely expected to keep rates on hold on Thursday, amid a litany of risk factors, notably to the rand.The rand was also supported by developments in Zimbabwe, gaining late on Tuesday after Robert Mugabe resigned.The rand immediately firmed below R14 on the news, but stalled at R13.9614 a...
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