Investors may want a premium on bonds, which may push the cost of borrowing up. But a downgrade will have an immediate impact on the cost of debt. |
Lion Beer needs to increase its export business to maintain viable growth. |
Subsidies could fuel inflation through increased spending. |
While the decline in inflation can certainly accommodate a rate cut, we believe the bank will defer such a decision until any potential petroleum price hikes and their likely impact on inflation becomes clearer. |