Ansu at Property.CoZa

19/09/2024

The South African Reserve Bank’s Monetary Policy Committee (MPC) has lowered interest rates by 25 basis points, as anticipated, despite a significant 50 basis point cut in the US the previous night.

With this reduction, South Africa’s repo rate now stands at 8%, and the prime rate at 11.50%.

This decision by the MPC means that the monthly payment on a new R2-million home loan at the prime rate will decrease by nearly R350. Since the MPC began raising rates in 2021, repayments on a R2-million bond have increased by R7,000 per month.

SARB Governor Lesetja Kganyago indicated that the current trend of cooling inflation is expected to continue. He also mentioned that the MPC anticipates the repo rate will stabilize above 7% next year.

In August, consumer inflation fell below the Reserve Bank's target of 4.5%. The MPC was waiting for inflation to approach the 4.5% midpoint of its 3% to 6% target range before reducing rates. The cooling of inflation has largely been driven by lower fuel prices, thanks to a drop in oil prices and a strong rand. Further relief is expected, with significant diesel and petrol price cuts anticipated in early October.

30/03/2023

The SA Reserve Bank's monetary policy committee hiked interest rates by 50 basis points to 7.75%. Economists were expecting an increase of 25 basis points.

Three members of the monetary policy committee voted in favour of the 50 basis point hike, while two wanted a 25 basis point increase.

The latest hike brings the prime rate to 11.25% - the highest level since 2009.

On a new home loan of R2 million at the prime rate, the latest increase hikes the monthly instalment by around R680. Since November 2021, monthly payments on a R2 million home loan are almost R5 500 more expensive due to a raft of rate hikes.

Reserve Bank governor Lesetja Kganyago said that inflation pressures remain a risk and that load shedding is pushing up the cost of living.

In February, headline inflation unexpectedly rose to 7% - the first increase in four months - due in large part to raging food prices. Food and non-alcoholic beverages annual inflation hit 13.6% - the highest level since April 2009.

Apart from local inflation, the local monetary authorities must also keep track of US interest rates, which have seen aggressive hikes. The gap between US and South African interest rates can't widen too much, otherwise foreign investors – who are on the hunt for solid interest rates - will shun rand-based assets. This will put more pressure on the rand, which is already one of the worst currency performers this year.

Kganyago warned that further rand weakness is likely, which would further fuel inflation.

Source: News24

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https://www.propertycoza.com/property/gauteng-benoni-rynfield-a-h-apartment-flat-for-sale-1344448/

03/11/2022

Hi everyone!
It's that time when I ask you all to support our pensioners again!
This market is for them to make some additional money as a government pension is not enough for them to live on 😢
So, please pop in on Saturday and make a difference in someone's life 🙏 Thank you! 💞

22/09/2022

Increase in Interest Rate

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A satisfied customer is the best business strategy of all.
- Michael LeBoeuf -

08/09/2022

Our sincere condolences to the family, friends and countrymen of Queen Elizabeth II who passed away this afternoon in Scotland. Our thoughts and prayers are with everyone who held her dear in their hearts.

She was truly a remarkable woman who dedicated her life to the service of her country.
May she rest in peace 🕊