Economists at Société Générale analyze Rand's outlook ahead of the South African Central Bank meeting.

Positive carry and dovish repricing of the Fed are a boon for the Rand

“We have pencilled in another 25 bps increase to 7.50% today after core inflation unexpectedly accelerated to a 5-year high of 5.2% in February.”

“Our house view is that today may not be the final hike. We have pencilled in a peak of 7.75% in 2Q.”

“The positive carry and dovish repricing of the Fed are a boon for the Rand.”

“A retracement in USD/ZAR towards 18.00 is not ruled out if the SARB comes across as hawkish.”