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The South African Reserve Bank raised its policy rate by 50 basis points to 8.25%, the highest since the financial crisis, to curb inflation. The central bank warned that further rand weakness was likely.
The rand fell to a record low as the hike raised concerns about growth, which is forecast at only 0.3% this year amid electricity shortages.
Tighter policy and weaker growth in South Africa reduce domestic demand for feed and food inputs, while a weaker rand raises the local cost of dollar-priced imports. Both effects shift South African feed purchasing power.
bloomberg.comRobert BrandMay 25, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
