“Persistently low underlying inflationary pressures suggest that the Bank’s expectations of an increase in core inflation to a 4.8% average over the quarter are high,” said FNB chief economist Mamello Matikinca. “While our view is for a 25-basis-point increase, benign underlying inflation may delay a hike,” she said.
Global focus remains on Brexit and the US-China trade war, although volatility in the oil price is also being eyed.
At 2pm, the rand was up 1.03% against the dollar at R13.9483, 0.76% against the euro at R15.9057, and 0.86% against the pound at R17.865. The euro was 0.27% firmer at $1.1403.