Bonds stable, markets not panicking about public protector’s move on Reserve Bank
The South African bond market was stable on Tuesday morning, shrugging off Public Protector Busisiwe Mkhwebane’s recommendation that the Reserve Bank’s constitutional mandate be changed from protecting the value of the rand to protecting South Africans’ "socioeconomic wellbeing". Mkhwabane’s recommendation, made on Monday, stemmed from conclusions of her final report on the government’s failure to recover funds extended to Bankorp, which was bought by Absa in 1992. The rand weakened more than 2% against the dollar after the comment was made on Monday. Bonds, which usually track the rand, also weakened as foreign investors sold local bonds. Rand Merchant Bank analyst Stephan Pienaar said the mild foreign selling of local assets, combined with losses seen in the rand and bonds, showed that markets were not panicking and "losses were likely to remain contained" as the policy was not likely to result in changes anytime soon. The Bank said in a note that if Mkhwebane’s recommended amendm...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.