The door remains wide open for further monetary policy tightening, which provided moderate support for the market’s rate hike expectations and is likely to have supported the Rand. The SARB’s stability orientated approach is likely to remain an important anchor for the Rand exchange rates.

Medium to long-term we urge caution. The ZAR is likely to remain at risk in a challenging interest rate environment and in view of domestic risks. In case of risk averse market sentiment, there is a risk of serious losses.