Rand drops as inflation moderates more than expected
This is the fourth consecutive inflation report that is below the midpoint of the SA Reserve Bank’s 3%-6% target range
20 November 2019 - 11:04
The rand pared gains on Wednesday morning as consumer inflation decelerated more than expected in October, strengthening the argument that the Reserve Bank may move to cut the interest rate.
An interest-rate cut in SA would give the economy a boost, but it would be likely to weaken the rand, as it would make SA's bonds relatively less attractive to foreign investors hungry for high-yielding assets...
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