The Rand has been fighting hard against the dollar. In early trade, the Rand ranged between R17.73 and R17.78.
The South African Reserve Bank(SARB) announced that the repo rate will be increased by 25 bp and the Rand responded well to the announcement closing Thursday business day at R14.54 against the dollar.
The SARB’s MPC has decided to increase the repurchase rate by 25 basis points to 4.25% This is effective from 25 March 2022. This is a move made by the Reserve Bank to try slow inflation.
Data showed on Wednesday that domestic inflation in February was 5.7%, which is too close to breaching the central bank’s inflation target range of 3%-6%.
“Oil prices increased strongly through 2021 and are up again sharply year to date, propelled higher also by the war and economic sanctions,” said Kganyago