Sa Big Business Hope For Interest Rates Cut, Rand Strength And 'responsive' Policy As Gnu Starts Its Work

27 Days(s) Ago    👁 93
sa big business hope for interest rates cut rand strength and responsive policy as gnu starts its wo

The business community, particularly the property industry, has expressed hope that the formation of a Government of National Unity (GNU) in South Africa will bring stability to volatile financial markets and incentivise the SA Reserve Bank (Sarb) to cut interest rates.

This comes as the countrys two biggest political parties, the ANC and the DA, on Friday announced that they had agreed to form a GNU together with other smaller parties, the IFP and the PA, after the May 29 election had no decisive winner.

The formation of the GNU saw President Cyril Ramaphosa being re-elected in Parliament, with former minister of Agriculture Thoko Didiza appointed as Speaker of Parliament and Dr Annelie Lotriet of the DA elected as Deputy Speaker.

The financial markets had been on tenterhooks for days before Fridays announcement of the GNU over fears that the ANC might opt to form a government with radical parties who do not have investor-friendly policies.

The JSE All Share Index closed 0.9% higher to 77 054 points on Friday and the rand surged to its best level in three weeks yesterday, rising 0.7% to R18.24 against the US dollar.