South African Reserve Bank (SARB) delivered a 50 basis point rate hike today, pushing the main interest rate up from 7.75 to 8.25%. While the decision was in-line with market expectations, South African rand slumped in the aftermath. USDZAR is currently trading near 19.75 - at a record high! South Africa is facing a lot of economic issues, including reduced availability of electricity resulting in blackouts. A capital flight out of the country can also be spotted. SARB noted that while inflation is decelerating (6.8% YoY in latest release), global economic problems are likely to weigh on the South African economy and currency.
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