Economy

Rand slips ahead of interest rate decision

Date: Mar 20, 2025

South Africa's (SA) Rand weakened early on Thursday, ahead of a much anticipated interest rate decision by the SA Reserve Bank (SARB).

At 09h15 CAT, the Rand traded at 18.1750 against the Dollar, about 0.3% weaker than its previous close.

The Dollar last traded up about 0.2% against a basket of currencies as markets digested the United States (US) Federal Reserve's decision to hold interest rates steady and lower the nation's growth forecast on Wednesday.

The risk-sensitive rand has been rocked by national budget deadlock, tensions with the US and uncertainty over President Donald Trump's tariffs, but investor focus will be pinned on the SARB's rate decision later on Thursday for clues into the health of Africa's most industrialised economy.

Economists polled by Reuters expect the central bank to hold rates steady, citing abundant risks.

However, some analysts believe that a rate cut could support the rand and boost sentiment after inflation came in lower than expected on Wednesday.

--Reuters--

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