The fuel price reduction is not yet expected to be sufficient to stop an anticipated weakening in commercial property demand in the 2nd half of 2022, as lagged direct and indirect impacts from earlier fuel price hikes feed through.

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.

South Africa is often seen as a high-beta play, be it regarding financial market risk aversion, or political uncertainty and corruption. Yet we have displayed remarkable exceptionalism over the past year, rarely featuring on the global political risk radar or suffering from capital flight.

There was room for a pause in the upward repo rate cycle, says Dr Andrew Golding.

According to statistics from ooba, South Africa’s foremost home loan comparison service, competition amongst the major banks for a bigger share of the home loan market remained fierce during the fourth quarter of 2021 (Q4 21).

The SARB’s Monetary Policy Committee is set to increase the repo rate this week, according to Finder.com’s SARB Repo Rate Forecast Report. 

The SARB Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 3.5% in a unanimous decision.

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.

Thursday, 20 May 2021 23:11

Repo rate remains unchanged at 3.5%

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.

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.

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