Share

Rand softer, bonds flat ahead of rate decision

Johannesburg - The rand was a touch softer on Thursday while government bonds were flat in cautious trading ahead of the South African Reserve Bank's decision on interest rates.

Economists surveyed by Reuters last week expected the Reserve Bank to keep the benchmark repo unchanged at 5.75% at its third policy meeting for 2015.

But traders, investors and analysts will scrutinise governor Lesetja Kganyago's speech, due to start at 15:00, to gauge the rates outlook for the rest of the year.

At 08:42 the rand was at R11.8645/$, just 0.25% off Wednesday's closing level at 11.8355.

The yield on the benchmark government bond maturing in 2026 was unchanged at 7.975%.

Shorter-dated forward rate agreements were lower as the market priced in a very slight change of a rate hike.

"Most of the premium in the FRA curve is now based on the forward guidance that the Governor of the South African Reserve Bank will give during his speech," Rand Merchant Bank analyst Gordon Kerr said in a note.

"If the rhetoric is not particularly hawkish, we could see short-term rates push down further."

ALSO READ:

Inflation surprise buys Sarb some time

Sarb in tight spot with interest rates

Experts differ on Sarb interest rate decision

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders