I also doubt that they will hike the rate. If we were over R11 to the USD we might have seen something like this happen but as you rightly stated we will only see the effect of the previous rate hike in the next couple of months.
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The ZAR Exchange Rate Thread
- Thread starter Robin Hood
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I also doubt that they will hike the rate. If we were over R11 to the USD we might have seen something like this happen but as you rightly stated we will only see the effect of the previous rate hike in the next couple of months.
Section 224 of the Constitution explicitly states that,
"The Primary object of the SARB is to protect the value of the currency in the interest of balanced and sustainable economic growth in the Republic."
XennoX
Expert Member
MKFrost, can you clarify what you mean when you say:
What does that statement mean? What do you mean by support in this context?
What does that statement mean? What do you mean by support in this context?
LazyLion
King of de Jungle
REPO RATE UNCHANGED
The repo rate will remain unchanged at 5.5 percent, the SA Reserve Bank's monetary policy committee decided on Thursday.
In January, the committee increased the repo rate by 50 basis points to 5.5 percent.
Source : Sapa /dm/jk
Date : 27 Mar 2014 15:24
The repo rate will remain unchanged at 5.5 percent, the SA Reserve Bank's monetary policy committee decided on Thursday.
In January, the committee increased the repo rate by 50 basis points to 5.5 percent.
Source : Sapa /dm/jk
Date : 27 Mar 2014 15:24
To my knowledge the mandate of SARB was to keep inflation between the 3 and 6% range. They are not to meddle in the currency as the Rand is a free float currency and is determined by market forces.
Now I know better.
It still is to an extend i.e. we do not have the resources to intervene on a continuous and or extended period. So [most] interventions are by the normal means i.e. talking the currency up and or down, interest rates etc..
From memory I think the SARB only really got stuck into the markets two or three times and got burned each time. So their intervention is more passive if one can call it that, unlike the US who thinks nothing of throwing a couple of billion at the market each and every day.
A currency and or any other tradable instrument moves in cycles where it goes up and down. During these cycles prices will move to a certain point and then reverse and or correct. These 'turning' points are called support and resistance areas. More often than not you will find that the movement gets stopped and resisted when it reaches a point where it previously stopped.
You may thus see the Rand falling to say R10.50 bounce up to say R10.90 then head back down again. The previous 'turning point' at R10.50 is now what we call a support area/line [it will support the price]. Think of it as a line in the sand. If the price comes back down again then that will be the area to watch. If it bounces again then we say that price has found support. If it breaks through then the chances is good that it will remain below that line in the sand. The line in the sand then becomes a resistance area/line as it will resist any movement back above it
Look at the attached image [hope its clear enough]. This is a 4 hour chart of the Rand meaning each bar represents 4 hours. The two yellow lines is what we will call support and or resistance lines. You can see how price was supported at the line [yellow squares I drew] and how price movement was resisted at these areas [red squares I drew].
When trading traders are on the lookout for areas where price previously got stuck so to speak, as the chances is very good that it will happen again and if not then the chances is good that it will remain above/below the area after it broke through. These are the areas where traders usually start to enter their trades as it gives a good indication of the direction the price might be heading in.
You can read more here...
http://www.investopedia.com/articles/technical/061801.asp
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To try and influence anything other than the repo rate, is to wade into ****. Just make sure that the banks can lend from you (SARB) and you get the same back in real terms at the end of the day, i.e. repo rate of inflation. Just match inflation. Nothing else. Everything else will take care of itself.
www.fin24.co.za
“While rates remain unchanged for the next two months, the likelihood of further hikes in 2014 cannot be excluded," said says Jacques Celliers, CEO of FNB.
"I urge consumers to act with care and plan ahead for the remainder of 2014 with the possible impact of higher interest rates in mind."
He pointed out that Sarb has stated that its stance will remain accommodative to enable economic growth.
"However, as inflation rises we expect rates to be adjusted upward. In doing so, the Reserve Bank maintains our effective rates on an even keel,” said Celliers.
***With etolls coming into it and petrol going up, inflation will rise, so expect an "adjustment upwards"***
“While rates remain unchanged for the next two months, the likelihood of further hikes in 2014 cannot be excluded," said says Jacques Celliers, CEO of FNB.
"I urge consumers to act with care and plan ahead for the remainder of 2014 with the possible impact of higher interest rates in mind."
He pointed out that Sarb has stated that its stance will remain accommodative to enable economic growth.
"However, as inflation rises we expect rates to be adjusted upward. In doing so, the Reserve Bank maintains our effective rates on an even keel,” said Celliers.
***With etolls coming into it and petrol going up, inflation will rise, so expect an "adjustment upwards"***
chicken247
Senior Member
10.5762
Hoping it can get below 10.55 and stay there for some time.
Expecting a bounce back towards R10.90
chicken247
Senior Member
Not totally. The round number will attract a cluster of bids.
chicken247
Senior Member
Yes.
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