Given the vulnerability of South Africa’s economy in the wake of last week’s unrest, as anticipated, the Monetary Policy Committee adopted an accommodative approach by deciding to keep the repo rate steady at 3.5%, which leaves the prime rate at 7%, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Today’s announcement to hold the repo rate steady at 3.5% marks a full year that South Africans have been able to make the most of a historic low lending environment, says Carl Coetzee, CEO of BetterBond.

The residential property market continues to strengthen, as interest rates remain at record-low levels after a year in which the repo rate remained below 4%, says Carl Coetzee, CEO of BetterBond.

The South African Reserve Bank (SARB) is set to hold the repo rate at the 18-20 May meeting, according to a unanimous vote by 21 economists on Finder’s repo rate forecast report.  

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.

With South Africa’s inflation rate below the lower limit of the inflation target at 2.9%, and local inflationary expectations remaining well-anchored, it was expected that the Monetary Policy Committee would keep the repo rate unchanged, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

South African home buyers can look forward to a few more months of record-low interest rates as the Monetary Policy Committee has once again opted to hold the repo rate steady at 3.5%.

Thursday, 25 March 2021 19:29

Repo rate unchanged at 3.5%

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 (SARB) is set to hold the repo rate at the 23-25 March meeting, according to a unanimous vote by 25 economists on Finder’s repo rate forecast report.  

Over the past three years, the KwaZulu Natal (KZN) property market has enjoyed unparalleled growth, outperforming other provinces as an investment destination. And yet, it is still considered one of the best kept secrets in the country!

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