SARB Pauses Interest Rate Hikes, USD/ZAR Rises

The South African Reserve Bank (SARB) has paused its interest rate hiking cycle after 10 consecutive hikes.

The decision to pause was made in light of the recent slowdown in economic growth.

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The SARB also noted that inflation is expected to peak in the coming months.

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The USD/ZAR currency pair rose sharply in the wake of the announcement.

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The pair is now trading at its highest level since May 2022.

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The rise in the USD/ZAR is being driven by expectations of a more dovish monetary policy stance from the SARB.

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The pair is also being supported by the strength of the US dollar.

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The SARB is likely to remain on hold for the next few months.

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However, the bank could hike rates again if inflation continues to rise.

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The USD/ZAR is expected to remain volatile in the near term.

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