Brave Budget should keep ratings agencies at bay – Dr Roelof BothaAuthor: KLCBT | Published by KLCBT on 06 March 2018 at 09:45:22 | Last Updated On: 8 March 2018
Global capital markets reacted positively to SA’s National Budget for the 2018/19 fiscal year, with the rand/dollar exchange rate strengthening by 1,7% between 21 Feb (the day before the budget) and the weekend after the budget.
The benchmark R186 bond yield also provided a stamp of approval, shedding ten basis points during the same period.
It is the opinion of Dr Roelf Botha that the newly appointed minister of Finance, Mr Nene’s track record, together with a highly competent team of experts at Treasury, is such that markets have generally welcomed his appointment, particularly du to his support for scrupulous standards of public sector financial management and aversion towards any form of corruption or tender fraud.
The most notable talking point remains the increase in VAT and Botha explains the rationale behind it in the full summary document.
Download full summary document: KLCBT (Budget) Dr Roelof Botha