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Bi-Annual Policy Review Points to Further Normalization

SOUTH AFRICA
  • SARB release their biannual policy review documents, writing that further rate policy normalization is needed, and the risks to inflation remain on the upside.
  • Full document here: https://www.resbank.co.za/content/dam/sarb/publica...
  • Some strength goes through in ZAR following the SARB's semi-annual policy review, with USD/ZAR dropping to fresh session lows at 17.6364.
  • Tone of the initial headlines remains hawkish, with the bank flagging both the upside risks to inflation as well as the need for further tightening going forward (all written/approved after the 75bps hike on Sep 22).

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