# Rate hike possible if weak rand boosts inflation – Sarb - Moneyweb

> 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.

- Date: 2018-06-19 · published 2018-06-19T12:00:00.000Z
- Category: policy · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/64819-rate-hike-possible-if-weak-rand-boosts-inflation-sarb-moneyweb
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

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.

## Read by commodity

- USDZAR: neutral

## Sources

- moneyweb.co.za: https://www.moneyweb.co.za/news-fast-news/rate-hike-possible-if-weak-rand-boosts-inflation-sarb/

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