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Ahead of today's SARB rate.............>

SOUTH AFRICA
SOUTH AFRICA: Ahead of today's SARB rate announcement, RBC think the central
bank will cut its policy rate by 25bp to 6.50% given the positive developments
for the inflation outlook since the last meeting in November. RBC add ZAR is now
the top performing currency in the FX space (+12.4% vs USD since Nov meeting),
NERSA has approved a lower than anticipated tariff increase for Eskom, and
uncertainty about the outcome of the ANC elective conference is behind us. They
think these positive factors will outweigh the risks emanating from higher oil
prices and those surrounding the fiscal and the political environment, providing
the central bank with room to cut. 

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