Blitz Bureau
JOHANNESBURG: South Africa’s rand firmed after the central bank opted for another small cut to its main interest, quashing hopes of a bigger move, a Reuters report said. South Africa’s central bank lowered its main rate – by 25 basis points to 7.75 per cent – as expected by economists polled by Reuters.
Data released on November 20 showed inflation had dropped below the central bank’s 3 pc to 6 pc target range, which boosted analyst bets of a potentially steeper reduction. But central bank Governor Lesetja Kganyago said a 50 bps cut was not discussed and played up global risks and domestic price pressures.
Danny Greeff, co-head of Africa at ETM Analytics, said the central bank was unlikely to turn less cautious while there was still much uncertainty around U.S. President-elect Donald Trump’s policy proposals and what effect they would have on inflation. South Africa’s benchmark 2030 Government bond was stronger, the yield down 7 basis points at 8.975 per cent.