Sentiment is a key driver of investor confidence and the residential property market is no different in this regard.

Today’s repo rate reduction of 25bps (to 6.5%), coupled with early indicators of recovery in the South African residential property market augur well for the balance of the year and underscore the opportunity for home buyers to capitalise on the current favourable market conditions before the market enters a decisive upturn.

South African Reserve Bank (SARB) Governor Lesetja Kganyago has announced that the Monetary Policy Committee (MPC) has maintained the repurchase (repo) rate at 6.75%.

As anticipated, the MPC kept the repo rate steady, taking a conservative approach against the backdrop of rising fuel prices, and with a wary eye on CPI inflation, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

The Monetary Policy Committee (MPC) of the Reserve Bank has once again decided to leave South Africa’s repo rate unchanged at 6,75% and prime interest rate the same at 10,25%.

With inflation currently below the mid-point of the Reserve Bank’s inflation target and economic growth remaining sluggish, the Monetary Policy Committee kept the repo rate steady at 6.75%, as expected.

In the week ahead, the South African Reserve Bank (SARB) Monetary Policy Committee (MPC) will meet to deliberate on interest rates from the 26-28 March, and FNB expects it to leave its policy Repo Rate unchanged at 6.75%.

After an unexpectedly tough 2018, but with the welcome announcement that the repo rate remains unchanged following this first MPC meeting of the year, the outlook for 2019 is somewhat brighter.

The Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) has increased the repurchase rate (repo) by 25 basis points, effective 23 November, Governor Lesetja Kganyago announced on Thursday. 

The Firstrand economic team expects a 25 basis point interest rate hike this week when the SARB (South African Reserve Bank) MPC (Monetary Policy Committee) meets to deliberate on interest rates.