Money SA economy
The rand was steady against major currencies in midday trade on Thursday as local markets await the Reserve Bank Monetary Policy Committee's (MPC) decision on interest rates later this afternoon.
At 11.55am local time the rand was bid at R7.53 to the dollar, R9.66 to the euro and R11.49 to the pound. The euro was bid at $1.2821 from $1.2767 overnight.
"The rand is expected to remain range bound ahead of the MPC's rate decision later this afternoon," a local currency trader said. RMB currency analysts said that unless Governor Gill Marcus is "very hawkish", the market will continue to bet on a September cut implying no big implication for the rand from Thursday's meeting.
South Africa's repo rate is expected to remain unchanged at 6.5%, according to a survey of 11 leading economists by I-Net Bridge. Rates were cut against expectations in March, but the MPC kept rates on hold in May. It said at the time CPI forecasts indicated a slightly improved outlook compared with that presented at the previous meeting of the MPC, with lower projected inflation for 2010 and 2011.
Governor Marcus's surprise cut in March offers an interesting precedent for what could come in July or September, however, according to some economists surveyed.
Dow Jones Newswires reported that the euro reversed overnight losses Thursday after the latest euro-zone purchasing managers' surveys and industrial orders came in much stronger than anticipated.
