Rand weakens on repo decision
The South African rand weakened early on Thursday ahead of an interest rate decision by the central bank, while stocks were set to open flat.
The South African Reserve Bank has hiked rates by 200 basis points since 2014 but over the last 12 months has kept them on hold at 7%, saying its tightening cycle had come end.
Data on Wednesday showed consumer inflation at its lowest in 19 months and well below the Bank's upper target of 6%, prompting some investors to price in a higher probability of a rate cut.
In fixed income, the yield for the benchmark government bond due in 2026 fell two basis points to 8.63%.
NAMPA/REUTERS
The South African Reserve Bank has hiked rates by 200 basis points since 2014 but over the last 12 months has kept them on hold at 7%, saying its tightening cycle had come end.
Data on Wednesday showed consumer inflation at its lowest in 19 months and well below the Bank's upper target of 6%, prompting some investors to price in a higher probability of a rate cut.
In fixed income, the yield for the benchmark government bond due in 2026 fell two basis points to 8.63%.
NAMPA/REUTERS
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