The rand had firmed against major global currencies shortly before midday on Wednesday, with the local currency gaining after Statistics SA reported that inflation moderated in January.Inflation, measured by the annual change in the consumer price index (CPI), slowed to 4.4% in January from 4.7% in December, beating a Trading Economics consensus forecast of 4.5%. The print has slightly increased the prospect of an interest-rate cut in March, although focus will remain on the tabling of the budget later on Wednesday.Investors and ratings agencies are looking for clear signs that the government will both contain its spending, and pursue pro-growth policies. This comes as the state seeks to avoid the damage that would result from further credit ratings downgrades.A lot has already been priced in, but a budget that matched market expectations would allow for further rand gains, said Rand Merchant Bank currency strategist John Cairns. Volatility after 2pm, when the budget will be release...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.