JOHANNESBURG, Jan 30 (Reuters) – South Africa’s rand was little changed early on Thursday ahead of an interest rate decision by the South African Reserve Bank.

At 0650 GMT, the rand traded at 18.5675 against the dollar, near its previous close of 18.5750.

The dollar was also little changed as markets digested the Federal Reserve’s decision to hold interest rates steady on Wednesday.

The SARB will announce its first interest rate decision for the year later on Thursday, when it is expected to cut rates by 25 basis points to 7.50% according to economists polled by Reuters.

“Markets expect a 25bp cut, but recent financial market volatility, a strong ZAR, and Trump-related risks could push the SARB to hold,” said Andre Cilliers, currency strategist at TreasuryONE.

Local investors will also be looking at the December budget balance reading and producer inflation data, which could give clues on the health of Africa’s most industrialised economy.

South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 1.5 basis points to 8.955%.

(Reporting by Sfundo Parakozov, Editing by Bhargav Acharya and Kate Mayberry)