South Africa: Wrap-Up and Look Ahead (March 23-27)
- Retail Sales increased by 1.7% (y/y) in January
- CPI fell by 0.5pp to 3.9% in February and still remains within the targeted 3-5%
- The SARB will announce their next interest rate decision on March 26th
The Rand regained some of its footing against the US Dollar this week, given South Africa’s rise in retail sales and additional drop in inflation. This newly compiled data will be taken under consideration as the South African Reserve Bank looks to make their next interest rate decision on Thursday March 26th.
South Africa’s retail sales increased by 1.7% (y/y) in January, and by 0.6% in the final quarter of 2014. With a notable upturn in the exchange of textiles and clothing, retail sales provide an encouraging sign for economic growth which is expected to slow in the first quarter of 2015. In offering further support, CPI fell 0.5 pp to 3.9% in February, leaving the indicator well within the SARB’s targeted 3-5 percent range.
Looking forward at the week ahead, the rand will likely be affected by the following Events:
|Release Date||Release Time||Event||Date||Reporting Agency|
|March 24th||7:00 GMT||Leading Indicator||JAN||South African Reserve Bank|
|March 26th||09:30 GMT||PPI (YoY)||FEB||Statistics South Africa|
|March 26th||13:00 GMT||SARB Interest Rate Announcement||MAR||South African Reserve Bank|
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