The rand's relative strength since Cyril Ramaphosa's victory at the ANC elective conference in December has prompted some economists to expect interest rate cuts in 2018. But this is unlikely at this week's monetary policy committee meeting as local and global risks still cloud the horizon. Jeffrey Schultz, an economist at BNP Paribas, said the Reserve Bank would have "room for manoeuvre" if the rand held on to its gains and if inflation undershot the bank's estimates. The Reserve Bank could easily cut rates after the February budget, but this week's meeting would be too soon to do so. Schultz said two 25-basis-point reductions were possible this year, in March and May.
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