South African rand gains ahead of cenbank’s rate decision

JOHANNESBURG, Nov 23 (Reuters) – The South African rand was stronger in early trade on Thursday ahead of a key interest rate decision by the central bank amid high inflation.
At 0607 GMT, the rand traded at 18.7850 against the dollar , over 0.6% stronger than its previous close.
The dollar last traded around 0.3% weaker against a basket of global currencies.
Headline consumer inflation (ZACPIY=ECI) rose to 5.9% year-on-year in October from 5.4% in September, data from Statistics South Africa showed on Wednesday, nearing the top of the central bank’s target range of 3% to 6%.
Investors will focus on the South African Reserve Bank’s (SARB) main interest rate decision and its Monetary Policy Committee’s tone on the future rate path (ZAREPO=ECI), (ZAPRIM=ECI) later in the day.
Analysts polled by Reuters predict interest rate to be maintained at 8.25%, its highest since 2009.
“Let’s see the tone of the statement, the forecasts and vote split. Presumably, SARB will only pivot after the Fed,” said Rand Merchant Bank analysts in a morning briefing.
South Africa’s benchmark 2030 government bond was flat in early deals to 10.140%.
Reporting by Tannur Anders, Editing by Bhargav Acharya
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