The rand was weaker at midday on Friday, after reaching a new two-and-half-year high against the dollar earlier, as a result of a weaker greenback environment. The rand initially firmed following the Reserve Bank’s decision on Thursday to keep interest rates unchanged, but lost steam at the R12/$ threshold, as analysts said it could be overstretched at that level. The Bank sketched a more positive picture on consumer inflation and GDP growth projections for the next few years. But despite the more dovish environment, the Bank remained cautious ahead of February’s budget statement and the expected Moody’s ratings review thereafter. "The favourable inflation trajectory leaves room for modest monetary policy easing in upcoming months," Momentum Investments analyst Sanisha Packirisamy said. Longer-term inflation expectations, surveyed in the fourth quarter of 2017, remain encouragingly within the 3% to 6% target band, she said. At 11.30am the rand was at R12.1762 to the dollar from R12....
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