The downgrading of South Africa's debt to junk status and the firing of Pravin Gordhan as finance minister mean that interest rates will be on hold until 2020 at least, a poll of economists predicted yesterday.

Thursday, 30 March 2017 18:38

Repo rate left unchanged at 7%

The Reserve Bank has decided to keep the repo rate unchanged at 7% per annum, Reserve Bank Governor Lesetja Kganyago said on Thursday.

Thursday, 30 March 2017 18:30

Interest rate proof your home loan

“We welcome today’s decision by the Reserve Bank’s Monetary Policy Committee to maintain the repo rate at 7% as it provides some relief to consumers dealing with rising food inflation and taxes”, says Bruce Swain, CEO of Leapfrog Property Group.

South Africans can expect growth of 1.3% in 2017, which is expected to improve moderately to over 2% in the medium term, Finance Minister Pravin Gordhan said on Wednesday.

The FNB House Price Index for 2016 as a whole rose by 5%, slower than the 7.2% and 6.5% for 2014 and 2015 respectively.

While economic growth is expected to be mildly better in 2017, this is not yet expected to be enough to turn Real Household Disposable Income growth positive on a per capital basis.

October 2016 saw year-on-year growth in the average nominal value of middle-segment homes in the South African housing market remaining relatively low against the background of trends in and prospects for the economy and the household sector.

The Commercial Property Market has been seeing its average capital growth slowing in recent times, driven by economic growth weakness and interest rate hiking of recent years.

The Residential Mortgage Market is weak in terms of transaction growth, but solid in terms of debt repayment performance under weak economic circumstances.  

In the 2nd Quarter of 2016, the TPN-FNB National Average Gross Residential Yield rose slightly for the 1st time since the 1st quarter of 2014.

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