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NextEmergingMarketShock Comes FromSouthAfricaWhichUnexpectedlyHikesBy 50 bps

// ZeroHedge

First it was Turkey defending itself tooth and nail against Bernanke’s tapering, now it is South Africa, just as we predicted less than anhourago.

SOUTH AFRICA RAISES BENCHMARK RATE TO 5.50% FROM 5.00%; EXPECTATION WAS FOR UNCHANGEDSOUTH AFRICA CENTRAL BANK RAISES BENCHMARK RATERAND STRENGTHENS AS CENTRAL BANK UNEXPECTEDLY RAISES REPO RATES. AFRICA’S MARCUS SAYS MOVE NOT INTENDED TO AFFECT RANDS. AFRICA’S MARCUS SAYS HAVE A FLEXIBLE EXCHANGE RATE

Naturally, the ZAR surges… for about 10 milliseconds, afterwhichitpromptlydropsto a levelweakerthanpre-announcement!

Full statement:

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