The Rand traded sideways last week and is currently at R18.04 against the US dollar despite the recent interest rate change. Interest rates were adjusted down by only 25 basis points last week, which may have been a very conservative adjustment. I feel it was the right decision considering there is a lot of potential for inflation to rise again quickly if the dollar strengthens, the Rand weakens, oil prices rise again, etc. This has also led to the Rand staying stronger, which may help limit the inflation rate.

However, the latest Brent crude oil price increased last week, now standing at $75 per barrel. The Russia-Ukraine conflict has escalated, pushing prices up a bit, while demand from China may have increased slightly.