South Africa: Surprise 25bps rate cut from SARB – TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities point out that the SARB has surprised the prevailing market expectations with a 25bps rate cut.

Key Quotes

“We and the consensus had expected a hold, though we attached only a low 60% chance to such outcome. The MPC voted unanimously, after lowering again CPI and growth projections, acknowledging a modest improvement in certain external risk factors, and a realignment of the ZAR to fair value.”

“We also believe the SARB is less worried about the potential implications of a Moody's downgrade to junk.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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