Rand steady before inflation, retail sales data

The rand was steady in early trade on Wednesday, ahead of consumer inflation and retail sales figures due later in the day.

At 08:50, the rand traded at R18.18 against the dollar.

Statistics South Africa (Stats SA) will publish the March consumer price index (CPI) at 0800 GMT, with analysts polled by Reuters predicting inflation will ease slightly to 6.9% in annual terms from 7.0% in February.

Inflation numbers are closely watched for their implications for the South African Reserve Bank’s monetary policy.

The central bank has raised interest rates nine times in a row since November 2021 in a bid to tame inflation, with last month’s hike a bigger-than-expected 50 basis points.

Stats SA will release February retail sales at 1100 GMT, with a 0.3% annual contraction forecast after a 0.8% decline in January.

Consumer spending in South Africa has been constrained by stubborn price pressures and the worst power cuts on record.

The central bank and the International Monetary Fund predict the economy will barely grow in 2023.