South African bonds were steady on Wednesday just before midday as the local market awaited the Reserve Bank’s interest rate announcement. Expectations are that the Bank’s monetary policy committee (MPC) will keep interests rates at 7%, despite easing inflation. Statistics SA said on Wednesday that inflation for June had eased to 5.1% on an annualised basis, from 5.4% in May. The rand, which bonds usually track, was slightly weaker ahead of the interest-rate announcement, expected shortly after 3pm. The European Central Bank (ECB) is also expected to make its monetary policy announcement later in the day. While the bank is not expected to change its policy on interest rates, it could shed light on its monetary stimulus programme. TreasuryOne dealer Andre Botha said "should the ECB come out hawkish and the MPC cuts interest rates, we could see the rand on the back foot at the end of the day. But the opposite is also true where a dovish ECB and MPC hold could drive the rand stronger"....
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