# South African rand weakens after smaller rate hike - Markets - Business Recorder

> The South African Reserve Bank raised its repo rate by 25 basis points to 7.25%, a smaller move than the 50 basis points most economists expected. The rand weakened on the less hawkish guidance. ETM Analytics suggested the decision marks the peak in rates, with at most one more 25-basis-point hike.

- Date: 2023-01-27 · published 2023-01-27T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/38086-south-african-rand-weakens-after-smaller-rate-hike-markets-business-recorder
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

A smaller hike that signals a rate peak can weigh on the rand by reducing its yield appeal, which raises dollar-priced import costs for feed buyers. The effect on feed markets is modest.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- brecorder.com: https://www.brecorder.com/news/40222835

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.