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.

Joff van Reenen, Founding Partner and Lead Auctioneer of specialist real estate auction company High Street Auctions, says as much as the repo rate increase of 50 basis points was not unexpected, it’s certainly not welcome.

Carmen Nel, Economist and Macro Strategist, Matrix Fund Managers believes SARB getting ahead of the curve.

According to Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, the decision by the South African Reserve Bank’s Monetary Policy Committee (MPC) to raise the repo rate by 25 basis points to 4% is not unexpected.

Comment from Carl Coetzee, CEO of BetterBond, on today's repo rate increase:

After a year and a half of pandemic conditions made worse by South Africa’s crippled economy, rising municipal rates and tariffs, violent protests and looting, it’s safe to say the commercial and industrial property sectors have had a difficult time of late.

Second quarter oobarometer statistics released by ooba, South Africa’s foremost home loan comparison service, show how the fresh perspective on home and work life brought about by the COVID-19 pandemic has influenced home buyers to buy real estate that suits their new found needs, at a higher average price. 

Redefine Properties is leading the charge towards a sustainable future in the property sector with a R1 billion issuance on the JSE for its first sustainability-linked bond.

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