South Africa Awaits Medium-Term Budget Statement as Revenue Windfall Improves Fiscal Outlook
JOHANNESBURG — The South African rand was little changed in early trade on October 21 as investors avoided large positions ahead of the medium-term budget review. Finance Minister Enoch Godongwana is due to deliver the Medium-Term Budget Policy Statement at around 1200 GMT, expected to provide clues on the country's fiscal outlook and credit-rating prospects, Reuters reported.
Economists expect Godongwana to present an improved fiscal outlook, with a revenue windfall bolstering a push to regain an investment-grade credit rating. But record-high fuel prices, weak economic growth and pressure to spend ahead of November 4 local government elections could limit how much of the windfall the Treasury saves.
Statistics South Africa is also set to release September consumer inflation and August retail sales data on Wednesday. Economists polled by Reuters expect headline inflation to accelerate to 4.7 percent in September from 4.4 percent in August, citing higher transport costs from rising fuel prices and rand weakness; Investec forecasts 4.6 percent and Nedbank 4.8 percent. Annual retail sales growth is forecast to edge up to 3.5 percent in August from 3.4 percent in July.
At 0542 GMT the rand traded at 16.4075 against the dollar, little changed from Tuesday's close. The rand fell more than 2 percent against the dollar in September.
Source: GSM · USA (original Chinese edition)
Photo: 南非比勒陀利亚联合大厦。图片：© Ruby D-Brown / CC BY 4.0，Wikimedia Commons
