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Rand Shows Muted Reaction To SARB's On-Hold Rate Decision

ZAR

The rand takes the SARB press conference in stride, with the central bank delivering another hawkish hold, as was widely expected. Governor Kganyago reiterated that "the job of fighting inflation is not yet done" amid "serious concern" over upside risks to the inflation outlook.

  • Turning to the nuances, the tight 3-2 vote split (with dissenters seeking a 25bp hike) may have surprised some, while the Governor warned that fiscal deterioration leads to higher interest rates.
  • Spot USD/ZAR fluctuated during the press conference, before stabilising around its previous levels. It last deals at 18.9830, ~1,420 pips above neutral levels, with familiar technical levels still in play.

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