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Reserve Bank Deputy Governor Kuben Naidoo said the central bank would act if the rand's weakness feeds second-round effects on inflation. Inflation was 4.5% in April, and traders priced a 66% chance of a 50-basis-point rate hike by year-end.
The bank held its key rate at 6.5% in May.
Higher South African interest rates would strengthen the rand and reduce import costs, while inflation pressure from currency weakness could squeeze household spending on animal products.
moneyweb.co.zaMatthew MillerJun 19, 2018Not 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.
