The South African rand was almost flat against the US dollar after the South African Reserve Bank kept its monetary policy intact but signaled that the monetary tightening cycle may come to an end soon.
The bank’s Monetary Policy Committee decided to keep the main interest rate at 7%. The central bank updated its forecast, reducing the inflation projections to target 3%-6% range and boosting the outlook for economic growth. Governor Lesetja Kganyago said in the statement:
The MPC is of the view that should current forecasts transpire, we may be close to the end of the tightening cycle.
USD/ZAR rose a bit by 0.04% to 13.5839 as of 17:18 GMT today.
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