A potential credit downgrade by the end of the year is now more seeming with the heightened fiscal policy risks. The market is projecting a further rate cut before year end. The fund is well positioned to take advantage of the current uncertain economic climate.

The country’s growth outlook was revised lower for 2019, reflecting an expectation of a decline in business confidence, further electricity supply disruptions and general slowdown in the global economy. The FRA curve moved lower post the MPC decision and the Moody’s announcement, therefore projecting a cut in the repo rate in December 2019. the fund is well positioned to take advantage of the current economic climate.