(Bloomberg) -- Bets for an interest-rate cut in South Africa have resurfaced less than a month after a cabinet reshuffle sparked two credit downgrades and a rand meltdown. Forward-rate agreements starting in 12 months, which predicted a rate increase just two weeks ago, are now pricing in a 25 basis-point reduction, based on the spread over the Johannesburg Interbank Agreed Rate. The rand's quick rebound and inflows into the country's bonds are bolstering the rate-cut expectations, according to Rand Merchant Bank.
To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net.
To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Srinivasan Sivabalan, John Viljoen
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