The Monetary Policy Committee has decided against changing the repo rate, once again keeping it at 3.5% per annum, said Reserve Bank Governor Lesetja Kganyago.

After the five aggressive repo rate cuts last year that dropped the prime lending rate to a historic low of 7%, homeowners and aspirant buyers have been holding their breath, waiting for the pendulum to swing the other way in 2021.

The Monetary Policy Committee has decided against altering the repo rate, deciding to keep it unchanged at 3.5% per annum, said Reserve Bank Governor Lesetja Kganyago.

The South African Reserve Bank has just announced that it is holding the repo rate steady, as South Africa battles the second wave of the COVID-19.

After the worst economic downturn in decades, further dampened by the recent tightening of lockdown restrictions in response to the second wave of the pandemic and the recommencement of load shedding, economic growth – while admittedly coming off a low base - is still widely expected to show some positive growth of around 3% this year.

The South African Reserve Bank (SARB) has cut the Repurchase (repo) rate by 50 basis points.

The Reserve Bank has reduced the repo rate by 25 basis points to 6.25% in line with market expectation.

Against the backdrop of a persistently sluggish economy, subdued market confidence and lower-than expected inflation.

Sentiment is a key driver of investor confidence and the residential property market is no different in this regard.

Growth in the value of outstanding credit balances in the South African household sector (R1 669,6 billion) was only slightly higher at 6,1% year-on-year (y/y) at the end of May 2019 from 6% y/y at end-April when outstanding balances came to R1 660,9 billion.