South Africa heading for a ‘cliff’, and Interpol fugitive found working at Virgin Active
The rand weakened on Wednesday as investors awaited interest rate decisions from the United States and from South Africa, Africa’s most industrialised economy.
The rand traded at 15.9550 against the dollar, approximately 0.6% lower than Tuesday’s close.
The US Federal Reserve is scheduled to announce its first monetary policy decision of 2026 later today.
“Monetary policy was contentious throughout 2025, with the central bank hesitant to lower rates following US President Donald Trump’s tariff-related turmoil in April until the latter half of the year,” analysts noted.
“Ultimately, the Fed implemented three cuts of 25 basis points each, reducing the policy rate by 75 basis points from 4.50% to 3.75%, amid growing concerns regarding a weakening labour market,” they added.
Analysts expect the Fed to keep rates unchanged and will be closely monitoring for indications on the pace and timing of future cuts.
The rand, like other risk-sensitive currencies, often responds to global factors such as U.S. monetary policy.
Investor attention will shift to South Africa’s first interest rate announcement of 2026 on Thursday, with 18 out of 26 analysts predicting that the central bank will maintain its repo rate, while eight anticipate a 25 basis point cut to 6.50%.
Economists mentioned in a research note that the Monetary Policy Committee (MPC) is likely to keep the repo rate steady at 6.75%.
“We believe the MPC will choose to hold rates, considering that inflation has risen above its 3% target and the South African Reserve Bank’s (SARB) forecast from November indicated potential near-term stability,” the economists explained.
Additional domestic releases this week include producer inflation numbers on Thursday, with figures on money supply, private sector credit, trade balance, and budget balance all set for release on Friday.
On the Johannesburg Stock Exchange, the Top-40 index finished up 1.5%.
As of Thursday, January 29, the rand is trading at R15.65 to the dollar, R21.66 to the pound, and R18.76 to the euro. Gold is currently valued at $5,521.37 per ounce, while oil prices have risen to $69.33 per barrel.
5 important things happening in South Africa today
South Africa is running out of natural gas: South Africa is projected to face severe natural gas shortages starting in 2028, as production from the Sasol-owned Temane and Pande gas fields declines. [BusinessDay]
Interpol fugitive found at Virgin Active: Virgin Active’s legal department is now engaged in the situation concerning a personal trainer who was suspended earlier this week upon discovering he is listed as a fugitive by Interpol. [DailyMaverick]
R120 million in unlawful properties: The leaders of Crime Intelligence (CI) cut the division’s equipment budgets for its nine provincial offices by 69% within a year to allocate funds for the acquisition of buildings valued at over R120 million, in violation of procurement laws and regulations. [News24]
BMW SA CEO’s warning to government: BMW SA CEO Peter van Binsbergen warned that applying maximum tariffs on vehicles from China and India might harm the entire industry. He noted it could raise entry-level car prices and negatively impact local manufacturers that depend on imports. [Reuters]
Government forces 80 student admissions: The controversial admissions and language clauses of the Basic Education Laws Amendment Act (BELA) are being used to justify adding about 80 more students to a school in the North West that is already at its capacity. [Newsday]
Loading ...