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JOHANNESBURG, July 23(Reuters) - The South African rand was little changed in early trading on Thursday as investors awaited the South African Reserve Bank's closely watched interest rate decision later in the day.
• At 0600 GMT the rand traded at 16.3750 against the dollar, little changed from its previous close.
• Sixteen of the 25 economists polled by Reuters expect the South African Reserve Bank to raise its benchmark lending rate by 25 basis points to 7.25% from 7.00%, while the remainder expect the bank to leave the rate unchanged.
• At the bank's last meeting, it raised its main lending rate for the first time in three years, joining only a handful of other emerging market central banks to have tightened policy during the U.S.-Israel war against Iran.
• South Africa's headline consumer inflation accelerated to a two-year high of 5.0% year on year in June from 4.5% in May, driven by price pressures stemming from the Iran war.
• Investec chief economist, Annabel Bishop said the Monetary Policy Committee discussed a 50 basis point lift at its last meeting in May and "this will likely be back on the table as the SARB seeks to contain inflation expectations (which have already jumped) while inflation is already well above its upper tolerance band of 4.0% y/y".
• South Africa's benchmark 2035 government bond was slightly firmer in early deals, as the yield fell 5 basis points to 8.66%.
(Reporting by Anathi Madubela; Editing by Alexandra Hudson)
