MARKET WRAP: Rand rallies below R18/$ after interest rate hike

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The SA Reserve Bank raised the interest rate by 50 basis points, higher than the market expectation for 25bps

The rand broke below R18 to the dollar on Thursday, firming to a seven-week best after the SA Reserve Bank’s monetary policy committee raised borrowing costs by more than expected.

The Bank raised the interest rate by 50 basis points — higher than the market expectation for 25bps, bringing the central bank’s benchmark repo rate to 7.75%, the highest since 2009...A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and TimesLive Premium.

 

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