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ZAR Reverses Early Strength After Unchanged Rate Decision

SOUTH AFRICA

With analysts roughly split in expecting a 25bps rate cut from the SARB today vs. no change, the SARB standing pat resulted in initial ZAR strength - but this has since been reversed, with USD/ZAR high than pre-decision levels.

The vote split was close, with 2 members voting for a 25bps cut vs. 3 voting for unchanged - this may suggest that easing has been pushed back, rather than scrapped altogether, although the SARB warn that any future moves are data dependent.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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