Home South Africa: SARB to decide if the USD/ZAR moves 0.5% lower or higher – TDS
FXStreet News

South Africa: SARB to decide if the USD/ZAR moves 0.5% lower or higher – TDS

Economists at TD Securities and the Bloomberg consensus expect the SARB to cut the repo rate by 50bps on 21 May. USD/ZAR is trading at 18.4882.

Key quotes

“We expect the MPC to cut the repo rate by 50bps to 3.75% at the next meeting on Thursday, 21 May. While consensus is also looking for a 50bps cut, the FRA curve is pricing in a deeper -75bps cut.”

“If the SARB cuts 50bps, USD/ZAR is likely to move 0.5% lower. If the SARB cuts over 75bps, we expect ZAR to weaken with USD/ZAR moving around 0.5% higher.”

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.