MARKET WRAP: Rand slides on repo rate hike
Global fears of rising inflation probably sealed the MPC’s decision; JSE pauses after six days of gains, in line with global markets
The rand weakened against the dollar after the Reserve Bank raised its benchmark rate from a record low on Thursday, while the JSE closed slightly weaker in line with global markets.
The Bank’s monetary policy committee (MPC) increased the repo rate by 25 basis points to 3.75%, a decision complicated by contesting factors at play. In the end, three MPC members voted for an increase and two for the rate to be maintained...