Unchanged repo rate unlikely to stall housing market momentum.

In a climate of significant external pressure and internal economic fragility, the Monetary Policy Committee’s (MPC) decision to hold the repo rate steady is a commendable and necessary act of stability.

Landsdowne Property Group has welcomed the 25 basis point interest rate cut, viewing it as a significant positive shift in market sentiment for the property market and especially the Johannesburg market which needs rejuvenation.

The South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) has decided to reduce the repo rate by 25 basis points, with effect from 31 January 2025.

The Reserve Bank’s Monetary Policy Committee (MPC) has kept the repo rate unchanged at 8.25%.

Today’s announcement by the Monetary Policy Committee (MPC) that the repo rate would remain unchanged at 8.25% - meaning that the prime rate holds steady at 11.75% - was disappointing for consumers with significant borrowings, including those with existing mortgages as well as first-time home buyers, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

After four, consecutive interest rate increases, there was scant hope that the MPC’s latest announcement would hold good news for homeowners.

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:

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