South African rand dips before consumer price data

Johannesburg-listed stocks opened slightly firmer on Wednesday

  

JOHANNESBURG - South Africa's rand dipped early on Wednesday, before the release of consumer price data which will shed light on whether inflation pressure is building in Africa's most industrialised economy.

At 0711 GMT, the rand  traded at 14.5600 against the dollar, roughly 0.2% weaker than its previous close.

Statistics South Africa is due to publish the September consumer price index at 0800 GMT, with annual inflation ZACPIY=ECI seen edging up to 5.0% from 4.9% in August.

The South African Reserve Bank (SARB) has kept its main lending rate on hold at a record low of 3.5% ZAREPO=ECI for its past seven monetary policy meetings, keeping its stance accommodative to support an economic recovery as inflation has not risen above its target range of between 3% and 6%.

Economists polled by Reuters expect the SARB to next raise the repo rate in the first quarter of next year. But markets have priced in a rate hike as soon as next month in the wake of the bank highlighting inflation risks in a recent monetary policy document. urn:newsml:reuters.com:*:nL8N2RA1SY urn:newsml:reuters.com:*:nL1N2R814N

Johannesburg-listed stocks opened slightly firmer on Wednesday, with the Top-40 .JTOPI index up 0.05% in early trade. The government's benchmark 2030 bond ZAR2030= was slightly weaker, with the yield rising 4 basis points to 9.42%.

(Reporting by Alexander Winning Editing by Peter Graff) ((alexander.winning@tr.com; +27 10 346 1076))


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