Rand erases gains after #SONA2016

iol news pic Zuma not impressed INDEPENDENT MEDIA President Jacob Zuma delivering his State of the Nation Address on Thursday night. Photo: Jeffery Abrahams/Cape Argus

Johannesburg - The rand slipped 0.3 percent after President Jacob Zuma delivered his State of the Nation Address that an economist and opposition politicians said did not address the key concerns of rating agencies.

By 1932 GMT, the rand weakened 0.3 percent against the dollar at 15.9425, erasing all gains notched in session.

“Rating agencies want two things: austerity and improved economic growth. I don't think the speech went the whole way in addressing these concerns,” said Bureau For Economic Research's economist Hugo Pienaar.

Ratings agencies have said South Africa's credit rating could be downgraded if further policy mistakes are made and if growth continues to disappoint. In its November review, S&P kept its rating at BBB-, one notch above sub-investment grade, but changed the outlook to negative from stable.


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