The rand declined for a fifth day versus the euro and bonds gained on speculation the central bank will signal further rate cuts this week after the International Monetary Fund lowered its global growth estimate.

The rand weakened as much as 0.6 percent to 10.5892 per euro, the weakest since Aug. 9, and traded down 0.4 percent as of 4:12 p.m. in Johannesburg. The 13.5 percent bonds due 2015 added 44 cents to 122.732 rand, driving the yield down 12 basis points, or 0.12 percentage point, to 6.871 percent.

The IMF cut its forecast for global economic growth this year to 4 percent and predicted “severe” repercussions if Europe fails to contain its debt crisis or if U.S. policy makers reach an impasse over a fiscal plan. South Africa’s Reserve Bank announces its interest-rate decision on Sept. 22, after saying last month it will “act appropriately” in the event of a significant global slowdown.
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