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With the consumer price index (CPI) coming in lower than expected for August 2018, all eyes will be on the South African Reserve Bank (SARB) ahead of the interest rate announcement.
Disappointing economic growth figures and a sharply weaker rand (since its strong point of about R11.55 to the US dollar in late February this year) have given South Africans a sharp reality check, demonstrating that while Cyril Ramaphosa’s presidency had revitalised the country’s sense of optimism, deep-seated structural economic challenges remain.
Currency weakness amid emerging market turmoil and disappointing domestic growth outcomes are set to feature prominently in this month’s Monetary Policy Committee (MPC) at the South African Reserve Bank (SARB). The three-day MPC meeting from 18 to 20 September will determine a suitable interest rate policy that will keep inflation inside the target range of 3-6% annually, ideally anchored towards the middle of the target range.
South Africa, famous for Great White sharks, could be the next focus for currency vigilantes.
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