The global and domestic growth backdrop and outlook as outlined in his Mid-Term Budget Policy Statement last year October has since deteriorated, including State Owned Enterprises whose financial prospects continued to fade, hence it is inconceivable that there would have been contrary an outcome in this budget. Our view is that the National Budget was well balanced, despite fiscal metrics having worsened, however not significantly so to warrant a ratings agency downgrade of our sovereign rating to junk status. This view is further corroborated by financial markets that ended the day slightly firmer: USD/ZAR opened at 14.28 worsened to 14.38 during the speech and traded as low as 14.05 towards the end of the day; our 10 year bond spiked to 9.10 yield during the speak from pre-budget levels of 8.80 then recovered back to opening sessions of 8.80. Read More Post Budget Review 2019 Patrick Mathidi
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