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USD/ZAR Brushes Off Higher PPI, SARB Focused On Medium-Term Factors

SOUTH AFRICA
  • No real reaction in USD/ZAR after the upside surprise in PPI
  • CPI prints in the coming months will be interesting to gauge whether the SARB's dovish policy stance can be sustained
  • Gov Kganyago reiterated at the prior meeting that he would look through near-term transitory factors to focus on medium term disinflationary ones.
  • 2022 Avg inflation expected to be well-contained at 4.2%
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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