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The rand and government bonds fell for a second day after Finance Minister Malusi Gigaba's budget raised the 2017/18 deficit to 4.3% of GDP, the highest since 2009. The rand hit an 11-month low of 14.30 per dollar, and Fitch and S&P flagged concerns about debt reaching nearly 60% of GDP and the risk of further downgrades.
The budget shock increases the risk of credit downgrades, which would raise borrowing costs and weaken the rand further. A weaker rand makes dollar-priced feed imports more expensive for South African buyers.
moneyweb.co.zaTiisetso Motsoeneng, ReutersOct 26, 2017moneyweb.co.zaMfuneko Toyana, Alexander Winning, Tanisha Heiberg, ReutersOct 26, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
