SOUTH AFRICA: CPI & SARB MonPol Decision Take Focus, US-SA Tensions Simmer
* Statistics SA will release August CPI data, with Bloomberg consensus looking for an acceleration to +4.5% Y/Y from +4.3% registered in July, with core inflation expected to stay unchanged at +4.2% Y/Y. Hours later, SARB Governor Lesetja Kganyago will announce the latest monetary policy decision during a press conference at 14:00BST/15:00SAST. * Ahead of the decision, South African FRAs sit ~14bp above 3-month JIBAR and 19 out of 22 economists polled expect a 25bp rate hike rather than a hold. See our preview: TZXB0ZW1iZXJfMjAyNl83NWZhNjcwOTVkLnBkZiIsImNvbnN1bWVyIjoibW5pLWVkaXRvcnxDTV MiLCJtaW50ZWRCeSI6ImVkaXRvcjoxIiwiaWF0IjoxNzkwMTQ1NzMyLCJleHAiOjE3OTAxNDYzM zJ9.ROcTRG6Lu6qTnzl6hPAagw1wO654_uJM2LA1IJju8P6vs0vySskw6MZDm4KxgsD1F3po6pi EoqDyyD5DJQY9hj0bO4DQNQarxMaqB5INyFIDDHkZX3S3hha-Nx3a0Cl41YpNpHIAH0OhFXrhQL g5qf35dV5t9ludskNFPtAFkf8OTqIj75i6zPKWLDZ6ZiwVEQEAbkl6ho3_-fB7txmT1YlbVDbwj UAJep_DoEutw67QrVCGYWHUibKmExYDXsTDRZiJpX7qE03bdpjHzN4lmflr3brAKrXKbyvBacN6 LNUfyknICegCt7U40oNjQ0MoYUCHdDYT0gX9T9-K529f_g for more details. * Demand at yesterday's SAGB auction was the strongest in four weeks, with the bid/cover ratio rising to 5.75x from 3.24x at last week's sale, on the
2% Y/Y. Hours later, SARB Governor Lesetja Kganyago will announce the latest monetary policy decision during a press conference at 14:00BST/15:00SAST. * Ahead of the decision, South African FRAs sit ~14bp above 3-month JIBAR and 19 out of 22 economists polled expect a 25bp rate hike rather than a hold. ROcTRG6Lu6qTnzl6hPAagw1wO654_uJM2LA1IJju8P6vs0vySskw6MZDm4KxgsD1F3po6pi EoqDyyD5DJQY9hj0bO4DQNQarxMaqB5INyFIDDHkZX3S3hha-Nx3a0Cl41YpNpHIAH0OhFXrhQL g5qf35dV5t9ludskNFPtAFkf8OTqIj75i6zPKWLDZ6ZiwVEQEAbkl6ho3_-fB7txmT1YlbVDbwj UAJep_DoEutw67QrVCGYWHUibKmExYDXsTDRZiJpX7qE03bdpjHzN4lmflr3brAKrXKbyvBacN6 LNUfyknICegCt7U40oNjQ0MoYUCHdDYT0gX9T9-K529f_g for more details.
24x at last week's sale, on the eve of the release of inflation data and the SARB's rate decision. 55bn worth of debt maturing in 2038, 2039 and 2042. * By this point, US ambassador Leo Brent Bozell III has given a number of interviews to local media only this week, expressing disappointment with President Cyril Ramaphosa's failure to address the 'five asks' outlined by the US. This media offensive comes as US-SA bilateral relations take another downturn.
* Unnamed South African diplomats challenged Bozell's claims and told News24 that Ramaphosa responded to the 'five asks' at length and in writing, but has received no reply from the White House. They noted that Pretoria has pursued a two-pronged strategy for mending ties with the US, but was unsure about the White House's end-game.