South African bonds hold steady ahead of Reserve Bank decision on rates
South African bonds were little changed on Wednesday afternoon, looking for fresh catalysts.The Reserve Bank’s monetary policy committee (MPC) could potentially jolt the local fixed-income market out of a narrow trading range, although economists expect interest rates to remain unchanged.Instead, markets will closely monitor Bank governor Lesetja Kganyago’s speech for signals on how the committee plans to approach monetary policy this year.The meeting on Thursday comes against the backdrop of a relatively stronger rand, which acts as a buffer against consumer inflation. But relatively higher oil prices could negate the rand’s strength.Standard Bank trader Warrick Butler said in an e-mailed note that other factors that could persuade the Bank to leave rates on hold on Thursday included the uncertainty around the budget, which Finance Minister Malusi Gigaba will present on February 21.Moody’s is set to release its credit-rating review on the country shortly thereafter."There is no way...
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