July 30th, 2008

South Africa
USD weakeness yesterday; lower commodities, weak EM => ZAR somehow stronger
2008 GDP looks to expand 3.2%, slipping to 2.8% in '09 (5.1% in '07)
*reweighting of a CPI basket usually always lowers CPI b/c consumers move away from products that prices are rising in
50bp hike in June showed taking factors other than CPI into account in rates; slowing in real exconomy believed to give more room in rates
PSC E climb yesterday
- lower M3 so less liquidity growth
- means credit extension through credit cards to finance consumption


Thailand
Puea Pandin party withdrew from 6 party coalition government under Samak Sundaravej
Thai Cabinet appointed a new board for Thai Central Bank; new 12 member board has power to change composition of MPC
- opposed to tightening bias adopted by BoT
- Chairing the board is ex-budget advisor to PM Thaksin
- now this board can appoint CB head vs. FM in the past, should provide more CB independence

Malaysia
Anwars Pakatan Rakyat opposition party
- leaked medical report showed no evidence of sodomy