* Rand ends nearly unchanged, better GDP gives slight lift
* Central bank: financial shocks from global uncertainty
high
JOHANNESBURG May 29 (Reuters) – South Africa’s rand held
steady against the dollar on Tuesday after getting a mild lift
from better than expected economic growth data for the first
quarter, while analysts say the local unit will stay below 8.45
for the short term.
The central bank’s Deputy Governor Daniel Mminele reiterated
at the bank’s monetary policy review that it was monitoring
unsecured lending in the banking sector but was as yet not
alarmed by its rapid growth.
The rand was at 8.35 to the dollar at 1500 GMT, not
far off Monday’s 8.3475 close in New York. Dealers say the
8.20-8.45 range looks to be where the rand will trade for the
next few sessions until a fresh wave of risk aversion that could
push it through 8.45.
The currency firmed slightly after first quarter economic
growth beat market expectations, suggesting growth in 2012 may
not be as weak as current market projections. GDP growth slowed
to 2.7 percent on a quarter-on-quarter basis but surprised
economists, who had been expecting only 2.4 percent.
The central bank in its bi-annual review of monetary policy
late on Tuesday said it expected a gradual recovery in domestic
demand and supply and said the economic outlook remained modest.
“Increased uncertainty regarding Europe and associated
global financial market turbulence has impacted on the perceived
risks to the outlook for both domestic inflation and growth,”
the South African Reserve Bank said in a statement.
“The probability of future growth and financial shocks
emerging from global developments remains high.”
Continued…
