JOHANNESBURG (Reuters) -The South African rand was steady on Wednesday after statistics agency data showed the country’s year on year inflation rate remained unchanged in February.
At 1506 GMT, the rand traded at 18.1325 against the dollar, near its previous close of 18.1350.
Investor focus is on the U.S. Federal Reserve, which is widely expected to keep rates steady later on Wednesday, amid investor worries over an economic slowdown due to President Donald Trump’s tariffs.
South Africa’s headline consumer inflation stood at 3.2% last month, the same level as in January. Economists had forecast annual inflation would pick up slightly to 3.3%.
The South African Reserve Bank will deliver its monetary policy decision on Thursday. Analysts polled by Reuters think a rate pause is likely.
However, some economists did not rule out the possibility of the central bank delivering another cut after Wednesday’s lower-than-expected inflation reading.
Separately, South African retail sales rose 7.0% year on year in January after rising by a revised 3.2% in December.
On the stock market, the Top-40 index closed about 1.5% higher.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 3 basis points to 9.095%.
(Reporting by Sfundo Parakozov and Bhargav Acharya, Editing by Mark Potter, Alexandra Hudson)
