President Jacob Zuma's decision to redeploy Pravin Gordhan to the finance portfolio comes a little too late, according to economist Dr Azar Jammine.
Jammine on Monday said that the rand has still weakened by over 10% since the initial cabinet reshuffle was announced last week.
He said that the probability is high that interest rates will rise, seeing the inflation rate edge towards 7% and consequently affecting employment creation.
Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies:
A lot of the damage has been done, but this latest move does come as a relief. I think the ratings agencies will regard it as too late.— Dr Azar Jammine, Director and Chief Economist at Econometrix
Poor old Pravin Gordhan is going to have his work cut out for him to try and stick to the budget deficit.— Dr Azar Jammine, Director and Chief Economist at Econometrix
Markets are going to be terribly edgy about when President Zuma is going to put his foot in it again.— Dr Azar Jammine, Director and Chief Economist at Econometrix