Moody’s back in SA
It is anybody’s guess whether South Africa’s sovereign credit rating will be downgraded by Moodys.The Credit rating agency is set to meet with Deputy President Cyril Ramaphosa and Finance Minister Pravin Gordhan. Moodys has warned that political infighting and growing debt at state-owned companies like SAA are threatening the country’s credit rating.
Recently Africa’s largest economy recorded 3.3% growth in the second quarter of the year. In June, credit rating agency Standard & Poor’s moved South Africa’s sovereign foreign currency rating to BBB- with a stable outlook, only one level above junk.
At the same time inflation slowed to 5.9% year on year in August from the 6% reported in July. Statistics South Africa has also reported that the consumer price index increased 0.1% in August. Food inflation recorded 11.3% year on year in August, same as July figures at 11.3%. We will now await the Reserve banks decion on rates expected tomorrow.
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