MNI: PBOC Net Injects CNY80 Bln Via OMO Thurs; Rates Unchanged

CHINA PBOC CONDUCTS CNY100 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Higher At 7.1270 Thurs; -0.78% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1270 THURS VS 7.1248

MNI BRIEF: China Yuan Supported By Exports, Short Swing Sees

MNI BRIEF: RRR Trim A Better Option Than Rate Cut Now: BOC

Business Sentiment Eases, But Export Outlook Ticks Higher

Japan May Retail Sales +3.0% Y/Y

MNI BRIEF: Japan’s H’hold Financial Assets Hit Record High

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Citi See Increased Risk Of Another 50bp SARB Hike As Market Digests Inflation Data

SARB

Following this morning's inflation print, Citi write that they cannot rule out the possibility of another 50bps hike from the SARB - with the data also pushing back the timeframe for any rate cuts this year. They watch the April CPI release ahead of the May meeting for any confirmation on rate hike size as well as the potential for the terminal rate.

  • Market participants added SARB rate-hike wagers in the wake of today's expectation-beating CPI outturn, with headline CPI staying comfortably above the central bank's +3.0%-6.0% Y/Y target range despite recent hawkish communications.
  • The local FRA curve shifted higher after the release, with contracts hitting new cyclical highs. The 2x5 FRA vs. 3-Month JIBAR spread has widened to around 44bp amid the perception that a 50bp move is on the table.
  • The next CPI report is due on May 24 and will be closely watched, given that it comes out on the eve of the SARB's monetary policy decision.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.