Rand flat ahead of rate decision

The rand was flat in early trade on Thursday as investors stayed away from placing big bets ahead of the central bank’s interest rate decision due later in the day.

At 08:55, the rand traded at R17.12 against the dollar.

The South African Reserve Bank (Sarb) will announce its latest monetary policy move at a news conference around 1300 GMT.

A Reuters poll published last week showed that 11 of 20 economists expect the central bank to hike rates by 50 basis points (bps) to 7.50%. Eight project an increase of 25 bps and one economist forecast no change.

December consumer inflation in South Africa dipped to 7.2% year-on-year from 7.4% in the prior month, data showed last week, in a sign the price pressures have been gradually easing in Africa’s most industrialised economy.

The central bank targets inflation between 3% and 6%.

The government’s benchmark 2030 bond was almost unchanged in early deals, with the yield at 9.630%.