This week is heavily focused on inflation, with three CPI releases scheduled. The first comes today from the Eurozone, where CPI YoY is expected to remain unchanged at 2.0%. On Wednesday, inflation data will be released for both South Africa and the United Kingdom. South Africa’s CPI YoY is forecast to rise slightly by 0.1% to 3.6%, while the UK is expected to see a similar 0.1% increase, taking CPI to 3.3%.
Please be aware that next week’s attention will shift to central bank policy decisions, with the Fed scheduled to announce its interest rate decision on Wednesday, followed by South Africa on Thursday. Currently, South Africa’s 3-year swap is trading at 6.4205, around 30 bps below the prevailing 3-month JIBAR. Further detail and context around market expectations for these rate decisions will be covered in next week’s Weekly Snapshot.
