Prospects for a run-off in Zimbabwe's election appeared to increase on Wednesday after state media said President Robert Mugabe had failed to win a majority for the first time in nearly three decades. Opposition leader Morgan Tsvangirai, however, insisted on Tuesday that he would win an outright majority from last Saturday's election.

A leadership meeting of President Robert Mugabe's ruling party will decide on Friday to contest a runoff election against opposition leader Morgan Tsvangirai, a senior official said. Referring to a meeting of the Zanu-PF politburo, a senior party member told Reuters: "I have no doubt the resolution will be in favour of a run-off, I have no doubt about that.

SA's targeted consumer price inflation likely decelerated sharply in December on cooling demand, a Reuters poll showed on Friday.

South Africa's debt market should continue to benefit after it becomes the first in Africa to be included in a prominent global bond index.

The SA Reserve Bank has done well to balance economic growth and job creation while pursuing its mandate to monitor inflation, says Pravin Gordhan.

Gloomy comments from the reserve bank were the backdrop to a fall in bond yields and a volatile day for the rand, which ended down against the dollar.

SA projected a larger-than-expected budget deficit as the approach of elections put the government under pressure to spend more.

Prospects for a run-off in Zimbabwe's election appeared to increase on Wednesday after state media said President Robert Mugabe had failed to win a majority for the first time in nearly three decades. Opposition leader Morgan Tsvangirai, however, insisted on Tuesday that he would win an outright majority from last Saturday's election.