The Pound failed to make much in the way of positive movement over the current week, having being damaged repeatedly by gloomy forecasts for UK growth in 2017.
The Rand rose notably against the Pound and other peers this week, thanks to a positive outlook on the part of South Africa’s central bank.
GBP Weakened by 2017 Recession Risks, Rand Rallied after SARB Revises Up Growth Forecasts
The Pound flopped to a low of around 18.49 against the Rand on Thursday, owing to concerning estimates about how the UK’s growth may play out in 2017.
Predictions from the National Institute of Economic and Social Research (NIESR) indicated the risk of recession next year was ‘significantly elevated’, while the OECD forecast that growth will continue to slow in the UK after the historic decision to leave the EU was made in June.
The Rand soared against its regular peers during Thursday’s trading, thanks to a highly positive reaction to the news that the South African Reserve Bank (SARB) was going to revise up its 2016 growth forecast, according to Governor Lesetja Kganyago.
Pound Sterling Outlook: BoE Rate Decision in Sharp Focus for Future
The next big piece of UK economic news to watch out for will come on September 15th, when the Bank of England (BoE) makes its monthly interest rate decision.
The BoE is expected to freeze the rate at 0.25%, but any signs of a split between policymakers over such an outcome could send the Pound up in value, due to the implication that a return to 0.5% may take place within the year.
Rand Future Forecast: ZA Inflation Rate Expected to Rise above SARB Target
One of the next big South African announcements to watch out for will be the nation’s inflation rate results for August, which is due to come on September 21st.
The annual printing is forecast to rise to 6.4%, while the SARB target for the year is from 3-6%, therefore this could lead to monetary tightening from the central bank.
Recent GBP ZAR Exchange Rates
At the time of writing, the Pound Rand (GBP ZAR) exchange rate was trending in the region of 18.5330 and the Rand Pound (ZAR GBP) exchange rate was trending in the region of 0.0538.
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