# The rand weakens as the Reserve Bank cuts lending rates | IG South Africa

> The SARB cut its repo rate by 25 basis points to 6.5%, lowering the prime lending rate to 10%. The rand reacted only mildly because the cut was widely expected, and the bank forecasts 2018 inflation of 4.9%.

- Date: 2018-03-28 · published 2018-03-28T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/66285-the-rand-weakens-as-the-reserve-bank-cuts-lending-rates-ig-south-africa
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

The rate cut was largely priced in, so the currency impact on feed import costs is limited and the main effect is on domestic borrowing costs.

## Read by commodity

- USDZAR: neutral

## Sources

- ig.com: https://www.ig.com/za/view-ig/the-rand-weakens-as-the-reserve-bank-cuts-lending-rates-180328

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