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INTEREST RATES REMAIN UNCHANGEDCape Town, 25 June 2009: Interest rates remain unchanged after today's Reserve Bank Monetary Policy Committee meeting, which is to be expected considering the recent 100 basis point cut announced in May. The positive impact of lower interest rates is however still trickling down to the consumer. Even through rates remain unchanged for now, mortgage repayments are still 23,8% lower than late last year when the interest rate hovered around the 15% mark. The property market is showing signs of increased activity, and we expect this to continue and perhaps even further improve, depending on the outcome of the next monetary policy committee meeting. The South African Chamber of Commerce and Industry's (SACCI) Business Confidence Index showed marked improvement between March and April, however May's figures showed a slight decline to 81.8 from April's 81.9. Even so, I am confident that positivity is slowly but surely returning, which bodes well for the immediate future of the property market. Despite the relief that the cumulative 450 basis points interest rate cut since December last year have brought, with strict lending criteria from financial institutions unlikely to change, consumers should continue to focus on reducing their debt and increasing their savings. Comment from Adrian Goslett, Assistant Regional Director RE/MAX of Southern Africa (021) 761 1110 or 082 4133 055
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