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The South African Reserve Bank cut its key rate to 6.75% from 7%, surprising 20 of 23 economists in a Bloomberg survey who expected no change. The rand fell 0.9% against the dollar on the day but recovered most of the loss on Friday.
The cut was aimed at an economy in recession.
A surprise rate cut lowers borrowing costs and can weaken the rand over time, which would raise the local cost of imported feed inputs. The rand's quick recovery limits the near-term price effect.
bloomberg.comPaul Wallace, Neo KhanyileJul 20, 2017
moneyweb.co.zaPaul Wallace, Neo Khanyile, BloombergJul 20, 2017Not 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.
