The South African rand was weaker today as analysts speculated that the nation’s central bank will keep interest rates unchanged at today’s monetary policy meeting. The rand rebounded currently.
Most economists believe that the South African Reserve Bank will keep its main interest rate at 5.5 percent for a seventh consecutive meeting today. Bank’s Governor Gill Marcus was keeping rates steady last year as threat from the European crisis to the nation’s economy has outweighed an inflation pressure. South Africa’s inflation slowed, reducing need for higher borrowing costs, but the country’s economy still grows, making it unnecessary to cut lending rates.
USD/ZAR went up from 7.9320 to 7.9780, but retreated to 7.9260 as of 9:00 GMT today.
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