The rand slipped back towards R14 to the dollar on Thursday, a day after Finance Minister Pravin Gordhan delivered the medium-term budget policy statement, which analysts have largely welcomed. "Gordhan once again delivered prudent fiscal budget, in line with most expectations. However, there remains some scepticism as to whether fiscal consolidation efforts from National Treasury will be enough to stave off sovereign debt rating downgrade later this year," NKC Research analysts wrote in a note. S&P Global Ratings associate director Gardner Rusike said the lack of detail on economic growth plans and reform at state-owned enterprises was worrying. The ratings agency ranks the country’s credit rating one notch above subinvestment grade. The local currency has shaved off more than 15c against the dollar since the budget, although weakness was partly due generally lower sentiment on global markets. The price Brent crude dipped below $50 a barrel for the first time in just more than thre...
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