The rand was firmer at midday on Wednesday after better-than-expected consumer inflation data increased the prospects of a rate cut later in the year. The headline Consumer Price Index (CPI) for April was lower than expected at 5.3% compared to 6.1% in March. Just after the number was released the rand dropped to R12.9809 to the dollar, before weakening above R13 again on a firmer dollar. At 11.42am, the rand was at R13.0482 against the dollar from R13.0754, at R14.5878 against the euro from R14.6206, and at R16.9404 against the pound from R16.9568. The euro was at $1.1180 from $1.1183. The Reserve Bank’s monetary policy committee is still expected to keep rates unchanged at the conclusion of this week’s meeting on Thursday. "[The committee] will probably wait until inflation is more securely anchored within the target range of 3% to 6% before loosening policy," said Capital Economics analyst John Ashbourne, who does, however, expect that the key repo rate will drop from 7% to 6.5% ...
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