South African bonds were a little firmer on Wednesday afternoon as the rand strengthened following the release of better-than-expected consumer inflation numbers for August. The data reinforced the possibility of an interest-rate cut on Thursday, by the Reserve Bank, with the consensus view that it will reduce the repo rate by 25 basis points, to 6.5%. The consumer price index (CPI) rose to 4.8% in August from a year earlier‚ Statistics SA said on Wednesday. The market expected 4.9%. At 2.56pm, the benchmark R186 was bid at 8.39% from 8.42% and the R207 at 7.04% from 7.06%. The rand was at R13.2401 to the dollar from R13.3186. Bonds were expected to be range-bound ahead of the US Federal Reserve policy statement later on Wednesday. Markets were watching for indications from the Fed on future interest-rate increases, and the possible reduction of its $4.5-trillion balance sheet, which was run up after the 2008 financial crisis. Oanda analyst Craig Erlam said it was unlikely the Fed w...
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