South African bonds were little changed on Thursday morning, with caution prevailing in the market ahead of key risk events later in the day.The Reserve Bank’s monetary policy committee could potentially jolt the local fixed-income market out of a narrow trading range with the announcement of an interest rate cut, but economists expect rates to remain unchanged.Recent rand strength has prompted some commentators to speculate that the Bank’s statement will be dovish.Sasfin Securities bond analysts said that the political economy was poised for considerable change, the rand was at its strongest level since 2015 and inflation expectations had moderated slightly. "This reduces the risk of interest rate hikes, but we won’t be counting on cuts just yet, as we await the uncertainty of the budget to be cleared up," Sasfin said.The two-day ANC national executive committee (NEC) meeting could also generate volatility. Reports, however, have suggested that although an exit for President Jacob ...
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