rand value interest rate


Rand value improves as interest rate remains unchanged

A good Thursday for the rand value was made even better by the SA Reserve Bank’s decision to keep the interest rate at 6.5%.

rand value interest rate


As forecast by many leading economists, the interest rate for South Africa remained unchanged on Thursday, giving a little boost to the rand value. However, it came with a warning.

The interest rate for South Africa

Governor of the South African Reserve Bank Lesetja Kganyago confirmed that the repo rate will be staying at 6.5% per annum, matching the value set back in March.

Kganyago went on to state that inflation is still a major cause for concern, and although they were able to keep rates stable this time, there would be no choice but to increase the interest rate if the rand fails to up its performance levels in the next six months.

Although, the decision to leave things as they were was won only by a very fine margin. Of the seven members representing the MPC, four of them choose to remain unchanged. The remaining three were opting for a 25 basis points increase, which would have put the interest rate at 6.75%.

Dollar to Rand value for Thursday 20 September

RAND value interest rate

Thursday was a good day for the ZAR. The interest rate announcement didn’t perturb the rand value too much, as it fluctuated between the low-to-high $14.40s. Considering it started the day at $14.65, the currency has gone some way to carving out a recovery against the greenback.

As of 16:00, the rand stood at R14.43 to the dollar. There was very little change against the British pound, where the rand measures up at R19.19. Against the Euro, there was a slight improvement, weighing in at R16.99.