VOLKSKAS BANK SEES RAND HINGING ON INFLATION RATE
South Africa must drive down its
inflation rate to much lower levels to prevent a further
decline in the rand, said Volkskas Bank in its monthly economic
review.
    The bank said that without a major drop in the inflation
rate, the rand was bound to eventually decrease even more,
regardless of a sharp rise in the gold price.
    Inflation is running at an annual rate of some 17 pct and
the rand is around 49.53 U.S. Cents. Most economists estimate
continued high inflation.
    Volkskas predicted the rand will remain fairly steady for
the rest of 1987 and then ease slightly next year.
 REUTER
