Africa-Press – South-Africa. The rand remained steady on Thursday after the South African Reserve Bank (SARB) cut its main lending rate during its first meeting following the adjustment of its inflation target.
The rand was trading at 17.1750 against the dollar, just slightly off Wednesday’s closing value. In a unanimous decision, the SARB lowered the rate by 25 basis points to 6.75%.
Economists polled by Reuters had differing opinions on what the policy decision would be.
Economists from Nedbank, who had anticipated the cut, noted in a research report that the bank’s quarterly projection model indicates potential interest rate cuts of 50 to 75 basis points over the next two years.
Headline inflation in South Africa, the continent’s most industrialised economy, increased to 3.6% year-on-year in October, up from 3.4% in September, remaining within the central bank’s newly announced target of 3%, which has a tolerance band of 1 percentage point.
Previously, the target range was set between 3% and 6%. On the Johannesburg Stock Exchange, the Top 40 index was up 0.3% at the last update.
On Friday, 21 November, the rand was trading at R17.25 to the dollar, R22.57 to the pound and R19.90 to the euro. Oil was trading slightly lower at $62.49 a barrel.
5 important things happening in South Africa today
Ramaphosa fires back at the US: President Cyril Ramaphosa declined a request from the US embassy to hand over the G20 presidency to acting US ambassador Marc Dillard at the Johannesburg summit. Ramaphosa’s message was that it would be insulting for him to formally hand over the presidency of the G20 to a junior official. [Daily Maverick]
Walmart’s plan to take on Checkers in South Africa: Walmart has made a significant move in South Africa’s competitive grocery market by launching a 60-minute delivery service. This places Walmart in direct competition with the country’s leading player in on-demand retail, Checkers Sixty60. [Business Day]
US Revokes former minister’s visa: Former Minister Naledi Pandor returned from the US to find an email from the Cape Town consulate stating her 2024 visitor’s visa had been retracted, and she would need to reapply. She reported not being given any reasons for the decision. [EWN]
Taxpayers fork out R4 million for suspended UIF boss: South African taxpayers have spent nearly R4 million on suspended UIF Commissioner Teboho Maruping during his two suspension periods. Democratic Alliance MP Michael Bagraim revealed that Maruping’s latest suspension has lasted 14 months, costing taxpayers over R2 million. [Newsday]
Relief for cash-strapped South Africans: Interest rate cuts bring relief to cash-strapped South Africans, with prime lending rates now lowered to 10.25%. “This sixth cut since September 2024 has reduced borrowing costs by 1.5% over 14 months,” said Gavin Lomberg, CEO of ooba Home Loans. He added that it fosters consumer optimism and boosts the property market outlook for 2026.
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