Research preview

South Africa’s central bank lifted its key policy rate by 25 basis points to 7.25% as it seeks to steer inflation back toward a 3% target. For quantitative traders, a shift in the policy rate reverberates through market liquidity, order‑book structure, and the probability that a market order will fully execute. This article connects the macro move to the micro mechanics of limit‑order queues, using a concrete worked example to illustrate execution risk. Macro Shift and Immediate Market Reaction When a central bank changes its policy rate, the most visible impact is on short‑term yields. A 25‑basis‑point increase pushes the benchmark yield higher, making local currency assets more attractive relative...