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JOHANNESBURG — THE rand extended losses against major currencies at midday yesterday following the release of local inflation data.
Annual consumer price inflation was 4,6 percent in September 2015‚ unchanged from August 2015‚ Statistics SA data showed.
The figure was in line with consensus forecasts. The consumer price index was unchanged month on month in September 2015.
At 11.30am the rand was at 13,3704 against the dollar from its previous close of 13,2997. The local currency was at 15,1685 against the euro from 15,0905 and at 20,6657 against the pound from a previous close of 20,5405.
The euro was at $1,1344 from a previous close of $1,1346. Markets will now await Finance Minister Nhlanhla Nene’s medium-term budget policy statement in the afternoon.
Mercantile Bank consulting economist Trudi Makhaya said the minister’s speech was likely to contain details about economic growth and policy direction for the next three years.
“The International Monetary Fund (IMF) and the Reserve Bank have lowered their forecasts for economic growth and the National Treasury will most likely follow suit in the medium-term budget.
“The government needs to keep the budget deficit under control if it’s to maintain macroeconomic stability, including the value of the rand and respectable sovereign credit ratings,” Makhaya said.—BDLive.
Bunjiwe Mkwananzi