It would be wrong to assume that the SA Reserve Bank’s decision to cut interest rates in January meant that it regarded a ratings downgrade by Moody’s Investors Service as already being in the price of local assets, says the Bank’s governor, Lesetja Kganyago.

The Bank did not factor in a potential move by Moody’s, not knowing what might happen or the effect it might have on the pricing of the country’s assets and inflation, Kganyago told Business Day at the World Economic Forum annual meeting in Davos, Switzerland, on Tuesday.

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