Recent market expectations, influenced by ongoing uncertainties about the timing for inflation to meet the central bank’s target midpoint and about global disinflation, suggest that in 2024, South Africa’s policy rate might either stay the same or continue near its 14-year peak at 8.25%. This is according to the Reserve Bank’s April monetary policy review released on Tuesday, which raises questions regarding the likelihood of the rate dropping below 5% at all this year.
The rand reversed some of its losses on Tuesday as global investor concerns over rising tensions in the Middle East relatively receded. On Wednesday , the rand was trading at R19.12 to the dollar, R23.81 to the pound, and R20.53 to the euro. Oil is trading at $88.49 a barrel. [HONOR SA General Manager Fred Zhou unpacks the launch of the flagship Magic Series in South AfricaBusiness Opinion