USD/ZAR continues to trade below 18. Economists at Commerzbank analyze Rand's outlook ahead of the South African central bank (SARB) rate decision
South African central bank’s rate decision likely to be narrow
We expect a narrow rate decision today.
The Rand is likely to ease if the SARB keeps its rate unchanged at 8.25%. The losses are likely to be limited though. Conversely, it is likely to appreciate if the SARB hikes its key rate to 8.5%, but in our view upside scope for the Rand is limited.
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