South Africa's rand firmer in early trade, focus on budget speech
JOHANNESBURG, Oct 22 (Reuters) - South Africa's rand firmedagainst the U.S. dollar in early trade on Monday, as investorsawaited the new finance minister's medium-term budget speech andconsumer price inflation numbers due in the week.
* At 0634 GMT, the rand traded at 14.3425 perdollar, 0.4percent firmer than its close on Friday.
* Market focus is on Wednesday's budget speech by newfinanceminister Tito Mboweni and the September CPI data.
* Africa's most industrialised economy unexpectedly enteredrecession in the second quarter, but Mboweni is expected tostick closely to previous budget balance forecasts for thecoming two financial years, economists predicted in a Reuterspoll last week.
* "Having taken up the mantle just over two weeks ago,MinisterMboweni is faced with the almighty task of having to balancepopulism with pragmatism as he outlines Treasury's spendingpriorities for the next three years," Rand Merchant Bank analystNema Ramkhelawan-Bhana said in a note.
* "He is likely to sound all the right notes for ratingsagenciesby proposing cost-containment measures and further expenditurecuts, thereby reaffirming Treasury's commitment to fiscalconsolidation," Ramkhelawan-Bhana added.
* In fixed income, the yield on the benchmark governmentbond duein 2026 was down 2 basis points to 9.19 percent.
(Reporting by Olivia Kumwenda-MtamboEditing by Raissa Kasolowsky)
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