Market decries state’s lack of urgency on economy

22 September 2019 - 00:13 By HILARY JOFFE and ASHA SPECKMAN

The Reserve Bank kept interest rates on hold this week on a day it emerged the cabinet had held back from making key policy decisions and that the medium-term budget would be delayed - moves read by the market as illustrative of a complete lack of urgency on the part of the government about moving the economy forward.

Economists believe the monetary policy committee (MPC), which flagged "this persistently uncertain environment" as a risk to inflation and dashed hopes of a rate cut anytime soon, will wait and see how and whether the government tackles the Eskom and fiscal/budget crises over the next couple of months and how ratings agencies and bond and currency markets react...

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