The Reserve Bank kept interest rates on hold this week on a day it emerged the cabinet had held back from making key policy decisions and that the medium-term budget would be delayed - moves read by the market as illustrative of a complete lack of urgency on the part of the government about moving the economy forward.

Economists believe the monetary policy committee (MPC), which flagged "this persistently uncertain environment" as a risk to inflation and dashed hopes of a rate cut anytime soon, will wait and see how and whether the government tackles the Eskom and fiscal/budget crises over the next couple of months and how ratings agencies and bond and currency markets react.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now