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GCIS<\/p>\n
A 0.5 percent drop in the repo rate was announced by SA Reserve Bank Governor, Gill Marcus, yesterday. This brings the prime interest rate 8.5 percent, its lowest level in almost 40 years.<\/p>\n
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South Africa\u2019s prime interest rate dropped to 8.5 percent yesterday, its lowest level in almost 40 years. The 0.5 percent drop was announced by Reserve Bank Governor Gill Marcus. <\/p>\n
While people with home loans will have more money in their pockets at a time when food and other costs are rising, those with savings will be hit. <\/p>\n
While the cut was welcomed by the property industry, it will hurt people with savings and pensioners who are already getting low interest income. <\/p>\n
\u201cThe effect of the 0.5 percent cut will be positive for the property market and help to keep its mild recovery ticking over,\u201d said Myles Wakefield, the chief executive officer of Wakefields Real Estate. <\/p>\n
\u201cThe last interest rate cut was in November 2010. This cut is something of an about-turn from talk in 2010\/2011 of rising inflation and rising interest rates in 2012. <\/p>\n
\u201cA lower interest rate may jolt those still sitting on the fence into buying a property. It will also mean that buyers can afford a little more,\u201d he said. <\/p>\n
On a R1-million bond over 20 years the new interest rate will mean a saving of R319; on an R800 000 bond over 20 years the |saving is R255 while the saving on a R500 000 bond over the same period is R159. <\/p>\n
\u201cEach lowering of the interest rates, although not good for savers, makes debt repayment easier. It will help those who are on the brink of becoming stressed sellers and have been holding on, while lower bond repayments will help others have a little more to use on other household expenses,\u201d said Wakefield. <\/p>\n
Adrian Goslett, the CEO of RE\/MAX of Southern Africa, said the record low rate, coupled with the higher percentage of bond finance being approved, would continue to stimulate the property market. <\/p>\n
\u201cTraditionally the South African property market reacts quite slowly to a rate cut or increase. However, the decrease in the interest rate will definitely spur consumer confidence in the months ahead and will certainly give prospective property buyers something to smile about,\u201d he said, <\/p>\n
Cees Bruggemans, FNB\u2019s chief economist, said the cut was a surprise for the market despite predicting a possible cut a month ago. <\/p>\n
\u201cThe cut comes as domestic economic growth is weak. Every little bit helps and this cut will help boost the economy and consumer confidence, which is a big driver of growth,\u201d he said. <\/p>\n
\u201cVery few people predicted that that the Reserve Bank would cut the rate.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"
GCIS A 0.5 percent drop in the repo rate was announced by SA Reserve Bank Governor, Gill Marcus, yesterday. This brings the prime interest rate 8.5 percent, its lowest level in almost 40 years. South Africa\u2019s prime interest rate dropped to 8.5 percent yesterday, its lowest level in almost 40 years. The 0.5 percent drop […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[8275,953,2143],"class_list":{"0":"post-12631","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-durban","8":"tag-newspaper","9":"tag-the-mercury","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=12631"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12631\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}