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Could weak ZAR, Q2 recovery keep SA rates on hold?

The rand’s recent weakness against the US dollar is mostly due to domestic factors – like problems at Eskom – rather than general EM fears about the US-China trade war. Currency weakness has increased the risk that policymakers at the SARB will keep their key rate on hold in September. But given that inflation will probably continue to ease, we’re sticking to our view of another 25bp cut.

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