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Gov Kganyago Says Recent CPI Reading Was In Line W/Forecast, S. Africa Sells Linkers

SOUTH AFRICA
  • USD/ZAR attacked key resistance from Feb 23 high of 19.3899 overnight but trimmed gains thereafter, with Middle East tensions fuelling a rout from the rand and other high-risk currencies to safe have assets. The latest round of risk-off flows was driven by reports of a limited Israeli retaliation strike against Iran as both sides seem to be wary of a full-scale escalation but also seek a way to save their faces.
  • Governor Lesetja Kganyago told Bloomberg that the SARB watches the Fed but doesn't follow its moves. He added that the latest CPI outcome was in line with the SARB's forecast, while he doesn't expect the review of the inflation target and monetary policy framework to be completed before the May 29 elections. The Governor noted that the recent extension of his and his two deputies' terms shields the SARB from the impact of the political cycle.
  • South Africa will sell 1.875% 2033, 2.500% 2046 and 5.125% 2058 linkers later today.

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