Rand weakness makes 50 bps rate hike ‘a fait accompli’
One analyst warns stagflation is on the cards due to unabated load-shedding
18 May 2023 - 20:27
SA’s persistent energy crisis, which seems to be deepening and accusations that the country has aided Russia in its war with Ukraine, have led the markets to price in a hefty 50 basis points (bps) interest rate hike when the central bank’s monetary policy committee (MPC) meets next week.
The rand continues to weaken, touching R19.48/$ as a strengthening dollar, aided by progress made in the US debt ceiling talks and Eskom warning of possible stage 8 power cuts this winter further weakened the local currency. ..
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