Fixed Income Chart Book: August 2017

We still expect a rate cut in September

We expect dollar weakness to continue, which will provide ongoing support to commodity prices and the rand. The unwinding of the Fed’s balance sheet is unlikely to have a negative impact on US treasuries and local bonds. With inflation having fallen below 5%, we expect a rate cut in September. In the meantime, S&P has released their revised national rating scale for South Africa, which resulted in several upgrades.