Bonds were marginally weaker shortly before midday on Wednesday, tracking the slightly weaker rand. Bonds had tracked the weaker rand in narrow ranges so far this week, after local political risk spiked on Monday, despite caution ahead of the release of US nonfarm payroll numbers on Friday, analysts said. The rand weakened sharply on Monday after Moody’s issued a warning on SA’s economic growth outlook and political uncertainty. Moody’s said recent political pressure for the Reserve Bank to pursue expansionary monetary policy was likely to prevail. Rand strength that resulted from the start of SA’s current interest-rate cutting cycle, on July 20, proved to be short lived after the publication of the Moody’s report, as well US Federal Reserve policy signals, said Investec chief economist Annabel Bishop. "Moody’s remaining negative outlook signals its intention to downgrade SA’s credit ratings again," said Bishop. Moody’s is expected to release its next assessment of SA’s credit ratin...
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.