Following last week’s interest rate decisions, the SARB cut the repo rate to 7.00%, while the FOMC once again opted to hold rates steady. In the aftermath, the ZAR weakened to 18.22 against the US dollar, before recovering slightly to trade around 18.05 today.
Looking ahead, focus shifts to the United Kingdom, where the BOE is set to announce its latest policy decision on Thursday. The market is currently expecting a 25bps cut, which would bring the bank rate down from 4.25% to 4.00%.