MNI China Daily Summary: Friday, April 12

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: PBOC Injects Net CNY2 Bln Via OMO Fri; Rates Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

EZ/UK T-Bill Calendar: Germany, Netherlands, France Due Monday

Final March Inflation Reading Confirms Softening Core Dynamics

Inflationary Breadth Narrows, But Services HICP Stays Above 4%

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

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

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Rand Comes Under Pressure Post-SARB, S. Africa's Equity Benchmark Refreshes All-Time Highs

ZAR

The South African Rand took a hit after the local central bank voted 3-2 to raise its benchmark policy rate by 25bp, which was less than the 50bp consensus forecast. In the subsequent press conference, Governor Kganyago reaffirmed the central bank's inflation-fighting credentials and noted that the current level of interest rates remains supportive of growth, adding that monetary tightening delivered to data acts with a lag.

  • The central bank also slashed its economic growth projections, citing the increase in the expected length and extend of load-shedding. The 2023 CPI inflation forecast was left unchanged.
  • Spot USD/ZAR has pulled back from a reaction high of ZAR17.2025 and last changes hands at ZAR17.1362, up ~260 pips on the session.
  • Local-currency bonds are firmer, with the shorter end leading post-SARB gains. South Africa's 10-year inflation breakeven rate is at 5.84% after refreshing one-year lows.
  • Benchmark FTSE/JSE Africa All Share Index found support in the dovish surprise provided by the SARB rate decision and rallied to new record highs.
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