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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.
SOUTH AFRICA
- On Thursday, the SARB decided to hike its policy rate by bps to 4.75% (in line with consensus), its highest level since April 2020.
- The central bank revised its inflation forecast higher to 5.9% for 2022 (from 5.8% previously) and to 5% for 2023 (from 4.6% previously).
- Growth expectations have been revised to the downside (as for the global economy); the SARB now sees 1.7% growth in 2022 (vs. 2% previously).
- Ramaphosa says he will host German Chancellor Scholz on 24 May in his first official visit to SA. They are expected to discuss SA’s stance on the Ukraine conflict – CapeTalk,
- USDZAR has been consolidating lower following the hike, with the pair gradually consolidating towards its 15.6810 support, which corresponds to the 38.2% Fibo retracement of the 13.4120 – 19.3510 range. Next key support to watch on the downside stands at 15.2910 (100DMA).
- The consolidation on the CNY has also eased the implied vol on ZAR in the past week (periods of sharp CNY depreciation are generally associated with ZAR weakness).
Source: Bloomberg/MNI
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.
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