Landsdowne Property Group has welcomed the 25 basis point interest rate cut, viewing it as a significant positive shift in market sentiment for the property market and especially the Johannesburg market which needs rejuvenation.

The South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) has decided to reduce the repo rate by 25 basis points, with effect from 31 January 2025.

Urban Growth, a leader in large-scale supply chain logistics industrial properties, welcomes the recent interest rate cut by the South African Reserve Bank as a catalyst for sustained growth and development in the logistics sector.

“As expected, the Monetary Policy Committee meeting today (18 July 2024) announced that the repo rate would again hold steady at 8.25%, with the prime lending rate therefore remaining at 11.75% - for the seventh consecutive meeting.

A positive economic sentiment and a cut in interest rates would be beneficial to the residential property market which could see renewed demand with rental yields expected to continue growing in the next 12 to 18 months, according to property experts.

The Reserve Bank’s Monetary Policy Committee (MPC) has kept the repo rate unchanged at 8.25%.

Today’s announcement by the Monetary Policy Committee (MPC) that the repo rate would remain unchanged at 8.25% - meaning that the prime rate holds steady at 11.75% - was disappointing for consumers with significant borrowings, including those with existing mortgages as well as first-time home buyers, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

With the inflation outlook deteriorating since the previous Monetary Policy Committee meeting – with the headline inflation rate again breaching the upper limit of the 4-6% target for the second consecutive month at 7.4% in June 2022, it was inevitable that a decision would be taken to further increase the repo rate, the question was simply by how much.

After four, consecutive interest rate increases, there was scant hope that the MPC’s latest announcement would hold good news for homeowners.

The still-bigger 75 basis point hike announced this afternoon, after the previous 125 basis points’ worth of rate hikes at prior meetings, makes the cumulative impact on interest rate hiking significant to date.