With a repo rate at 5 percent, policy makers could go either way. A Bloomberg survey of 21 economists revealed unanimous agreement that the rate will remain unchanged.
But policy makers with the central bank might cut rates by 0.25 percent, The Wall Street Journal reports.
One day after the monetary unit of the largest economy on the African continent slipped 2.3 percent against the dollar, the rand climbed 0.3 percent. Losses on Wednesday were correlated with the International Monetary Fund cutting down prospects for South Africa’s economic growth to 2.8 percent, which is lower than forecasts issued by both the government and the central bank.
One analyst said bonds issued by the nation soon will come into demand.
“A phase of consolidation may soon follow as foreigners look for speculative entry points on South African bonds,” states a Thursday email penned by analyst Quinten Bertenshaw with ETM Analytics in Johannesburg. “The trend for now remains up.”
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