MARKET WRAP: JSE flat as big guns fall on firmer rand, while banks gain
The JSE was fractionally higher on Wednesday as banks and retailers rose on a stronger rand while rand hedges weighed on the market. Trading was cautious ahead of the Reserve Bank’s interest-rate decision on Thursday. Some economists are pricing in a 25 basis point hike, but the likelihood of that happening has fallen following the release earlier of favourable consumer inflation data. Inflation slowed to 4.9% year-on-year in August, from 5.1% in July, and better than the expected 5.2%. The Bank will have to weigh up the effects of the firmer rand on the future inflation trajectory, with the monetary policy committee (MPC) tending to increase rates only when its inflation forecasts rise close to the upper limit of its 3% to 6% target range. It is important to remember, however, that the MPC makes its calls based on the next six to 24 months. The rand was 1.5% firmer against the dollar at the JSE’s close, reaching R14.6221 to the dollar, its best level in just more than two weeks, in...
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.