JOHANNESBURG: The South African rand was steady in early trade on Thursday, with investors awaiting release of producer price inflation data and the central bank’s rate decision later in the day.

At 0700 GMT the rand traded at 18.8800 against the US dollar, little changed from the previous close.

The rand had strengthened on Wednesday after consumer inflation fell for a second consecutive month to 5.1% year on year in December, but analysts said it was unlikely to affect interest rates yet.

South African Reserve Bank (SARB) Governor Lesetja Kganyago has previously said he wants inflation to decline sustainably to about 4.5% before considering rate cuts.

Producer price inflation for December will be released at 0930 GMT and is expected to show a decline from 4.6% year on year in November.

South African rand recovers from three-month lows

The South African Reserve Bank (SARB) will announce its rate decision around 1300 GMT.

All 20 economists polled by Reuters forecast that the rate will be left unchanged at 8.25%. South Africa’s benchmark 2030 government bond was flat in early deals, with the yield at 9.750%.