Rand-weakening options running dry

The South African Reserve Bank’s (Sarb) rate cut of 50 basis points last December brought tightening to an end at 8%, pointed out David Lubin, economist at HSBC in London. Forward markets are now already pricing in a rate rise, he said.

This means the Sarb would be left without one of the key methods of weakening the rand, said Razia Khan, Africa economist at Standard Chartered in London -- despite the impact the rand’s current strength is having on the economy. Lubin estimated that the curre