Relief across political and business spectrum after Tito Mboweni’s appointment
Credit rating agencies will back finance appointment, say economists
Tito Mboweni’s appointment as finance minister on Tuesday has received overwhelming support across the political and business spectrum. Economists said the move to appoint Mboweni, a former Reserve Bank governor and labour minister, would go down well with credit rating agencies. The post opened up for the fifth time in three years after former finance minister Nhlanhla Nene resigned on Tuesday. Mboweni’s appointment comes ahead of Moody’s Investors Service’s scheduled ratings decision on Friday. Economists also said it was unlikely for Moody’s to make a statement before the medium-term budget policy statement. "This appointment will appease the rating agencies. Mboweni’s a relatively credible guy," said Nedbank economist Isaac Matshego.
BNP Paribas economist Jeff Schultz said Mboweni understood what needed to be done for financial stability during his tenure as governor and was "likely [to] adopt the same mantra, which would sit well with credit rating agencies". Politically ...