The rand was firmer against major currencies on Thursday morning ahead of the Reserve Bank’s interest rate decision later in the day.

The Bank, which has kept the lending rate unchanged at 6.75% since November 2018, is expected to cut the repo rate by 25 basis points.

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“The 25-basis-point rate cut scenario may not have too high an impact on the rand’s movement as it is the expected outcome,”  IG market analyst Shaun Murison said. 

“The outlying scenarios of a 50-basis-point rate cut, or no change to lending rates, are perhaps the outcomes with the potential to move the domestic currency more significantly. A 50-basis-point cut would assume a short-term weakening of the rand, while the ‘no change’ scenario would be expectant of rand strength to follow.”

At 9.35am, the rand had firmed 0.27% to R13.9747/$, 0.18% to R15.7012/€ and 0.1% to R17.4044/£. The euro had strengthened 0.1% to $1,1236. 

Gold had fallen 0.44% to $1,419.92/oz while platinum earlier gained 0.52% to $848.24. Brent crude had gained 0.28% to $63.66 a barrel.