South African Interest Rates are expected to be hiked again in announcement

South Africa along with the rest of the world has experienced an unprecedented rise in inflation levels due to the perfect receipe of culmilating factors, which includes the oil supply chain shock due to the Russia and Ukraine War and the reprocussions of covid 19 emergency financial polices. Today the South African Reserve Bank is expected to announce further hikes to interest rates in order to tighten the squeeze on inflation. What does this mean for ZAR and how can we benefit from it.

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Today the South African Bank is expected to raise the interest rate to levels to which it was before the covid pandemic period. This forecast is supported by the majority of Bloomberg economists who believe that although inflation has slowed down there is still a need to further hike interest rates. During the pandemic the bank had to offer massive interest rate cuts in order to encourage money flow within the economy. This ofcourse would have effects in the future and today we are in that future with record high interest rates.

The Announcement will be made today at 3 oclock by Governor Lesetja Kganyago. This announcement will include an economic forecast of inflation and economic growth. These forecasts have major economic implications, so during this time we should expect the ZAR to experience some kind of volatility. It is advised that during this time you manage your trades well so you do not get stoped out. This volatility can be used to your advantage too as you can gain a lot of pips in a short amount of time.

The Zar has been playing at the 17.6 level on the USDZAR. With the announcement we should see the pair break past the 17.7 level and go a bit more beyond. Because of the volatility of the announcement it is recommended that you follow strict risk management as you can also erode your account away. Good luck trading out there and make money moves.