Strong rand could prevent interest rate increase

The strong rand will probably allow the Reserve Bank to leave the interest rates unchanged. The Bank’s Monetary Policy Committee begins a two-day meeting today where the subject of the interest rate will be high on the agenda. Analysts were upbeat when approached yesterday and say the strong rand is assisting the Reserve Bank to keep inflation figures well within the target range of between three and six percent. Experts agree that the rand will remain strong against the US dollar for the rest of this year.