Rand makes significant gains

The European Central Bank plans to pump billions of Euros into the sagging European economy.

FILE: The Rand has broken through the R13 level to the Eur

JOHANNESBURG - The Rand has made significant gains after the European Central Bank launched a significant plan to pump billions of Euros into the sagging European economy.

It has broken through the R13 level to the Euro.

A number of countries including Greece have been struggling to survive and the new measures are seen as a major boost for ailing economies.

South Africans look set to benefit as well.

With the oil price still low and the rand strengthening, South Africans will most likely see another significant drop in fuel prices next month.

This could have a knock on effect on inflation which has already dropped more than expected to 5.5 percent year on year for December.

Some economists have already suggested that a rates increase could be put on hold for now.

Many have even started to speculate whether the central bank may have room to cut rates at its first policy meeting of the year next week.

However, Reserve Bank Governor Lesetja Kganyago at the World Economic Forum in Davos, has indicated he will be waiting for now.