Bonds little changed ahead of inflation data and interest rate decision
South African bonds were flat on Monday morning with investors focusing on local consumer inflation data and the Reserve Bank’s interest rate announcement for direction. On Wednesday, Statistics SA will release the consumer price index (CPI) data for June. The Reserve Bank’s monetary policy committee two-day meeting ends on Thursday. Inflation is widely expected to have eased further from 5.4% in May to 5.2% in June, due to a decline in fuel prices, while interest rates are expected to be kept on hold at 7%. The outcomes of the monetary policy committee meeting will be closely watched as it is the first meeting of the Bank since SA went into a technical recession. Rand Merchant Bank analyst Isaah Mhlanga said this could be one of the monetary policy committee’s most difficult decisions this year "as the inflation profile and weak economic growth point to rate cuts. But the public protector’s recommendations to include socioeconomic objectives in its mandate can be perceived to have ...
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