Ratings agency Moody’s had pencilled in Friday for a scheduled update on its South African rating. But it opted to pass this time, without releasing even one of its erudite "in-depth" reports. One reason, perhaps, was that it had already done just that two weeks before, when Moody’s released a report on the Reserve Bank’s surprise July 20 decision to cut interest rates by 25 basis points. Ratings agencies employ excellent economists, but it’s not usually their style to comment on interest rates. That Moody’s did so this time was clearly because of the threat to the Bank’s independence and its price stability mandate. In the event, Moody’s came out firmly in support of the rate-cut decision as being justified on economic merits. But the agency raised the red flag about the public protector’s call for a constitutional change to the Bank’s mandate and used the report to warn that political pressure for less independent monetary policy could be a big problem for SA’s rating.It was a sob...

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.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.