ANNABEL BISHOP: Aversion to very risky assets, such as those of SA, increases
The comparatively less hawkish stance of the Reserve Bank, with a slower and lower interest-rate-hike cycle compared to that of the US, has added to rand weakness
24 February 2023 - 05:00
As we approach the end of February, growing risk aversion in global financial markets to weaker emerging market assets, including SA’s portfolio (equities and bonds) assets, is contributing to rand weakness.
As the electricity crisis worsened, leading to the announcement in the second half of January that load-shedding would be permanent in SA in 2023 and 2024, the economic growth outlook weakened materially, with the SA Reserve Bank revising its growth forecast for 2023 down severely, and investor confidence weakening. ..
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