Interest rate decision of the South African Reserve Bank

As investors wait for the crucial interest rate decision of the South African Reserve Bank, the rand momentarily slows down against the US dollar. However, as the greenback also remains vulnerable, the pair is still projected to go down to its support level by the latter half of the month. Moreover, the monetary policy committee of the SARB has a lot to digest before they come up with a decision on their meeting tomorrow, September 17. It’s widely believed that the SARB will leave its rates unmoved at about 3.50% but some are speculating as to whether they will cut it by at least 25 basis points. Thanks to the virus, the SARB MPC has slashed their rates by about 300 basis points, weakening the rand during the initial days of the pandemic. Fortunately for bearish investors, the broader weakness faced by the US dollar is enough to help them push the exchange rate’s prices to negative territories, allowing the rand to slowly recover against the buck.