The Macro Chart Book: October 2018

SA DEBT CONTINUES TO GROW

Although the Medium Term Budget Policy Statement (MTBPS) in October revealed that South Africa has a growing debt problem, we don’t expect it to result in a ratings downgrade from ratings agency Moody’s. In terms of the bond market, we revisited inflation-linked bonds (ILBs) to determine when to buy ILBs, using break-evens and fair value as a guide.