March 26th, 2008

ZAR: inflation up to 9.4% from 8.8% for first time in 5 years, adding to pressure for CB to hike rates.
- SARB wants to keep inflation b/w 3-6% target range.
- Rands 15% drop against USD plus higher electricity tariffs are increasing price pressures, after leaving unchanged 31Jan should hike next month
- key components were gas prices hiked by govt by 2.3% and food prices which were up 14.3% in Feb vs. 13.6% in Jan
- if food and gas continue to rise will increase wage demands as growth being dampened by already high rates and global slowdown
- Mboweni said he will take whatever action to anchor inflation and doesnt see oil prices likely to decline soon

Hang Seng closed up 6.43% in single biggest day since Jan '08 on Monday night
SGD: IP for Feb up 10.0%, easing from 12.8% in January; electronics sector gaining traction

RUB: should see Russia's economy grow at 6.8% in '08, driven by domestc demand, which should support liquidity