CD South Africa: It’s budget day 2015
Currencies Direct February 25th 2015 - < 1 minute read
This morning the markets witnessed the build-up to South Africa’s Finance Minister Nene's budget speech at 14:00 today. SA GDP beat expectations, Greece signed a new deal with Europe and Chinese growth numbers looked good. The result: a rand below 11.50/$. So, what do you need to know ahead of the Minister Nene's speech? The key focus will be balancing the budget and containing the ballooning deficit. The big question is how the minister will approach this… increase taxes (and which taxes to increase) or reduce spending. Either way a failure to keep the budget deficit in check could lead the rating agencies to downgrade SA's credit rating to 'junk' status, with disastrous effects on the economy, not to mention the rand. This budget is one of the most eagerly anticipated budgets in the past 20 years… hopefully it won't disappoint!
Commentary by Gareth Frye