South African bonds remained slightly firmer shortly before midday on Monday with market focus squarely on central bank decisions and economic data this week. The Reserve Bank will announce its interest-rate decision on Thursday after a two-day monetary policy committee (MPC) meeting, with consensus that the Bank will cut rates by 25 basis-points for the second time this year. But the recent rise in the oil price could mean the situation may have changed a little, said TreasuryOne dealer Andre Botha. The price increase could force the Bank to sit on its hands as the oil price may affect inflation forecasts. Two weeks ago it was almost a dead certainty that the Bank would cut, but recent developments could sway the decision to no cut, said Botha. With not much on the cards on the data front on Monday, bond trading was expected to be subdued and range-bound, with only small rebalancing flows positioning for the week ahead going through, said Rand Merchant Bank analyst Michelle Wohlber...
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