A possible interest rate hike on the cards
Firstrand economists expect a possible interest rate hike of 25 basis points, when the SARB (South African Reserve Bank) announces the new rate on Thursday.
The SARB Monetary Policy Committee (MPC) will meet this week to discuss the current repo rate, ahead of the announcement.
Property Firstrand Sector Strategist, John Loos, says if it becomes a reality, the hike will increase the Prime Lending Rate of major banks from 10% to 10.25%
"There are many economists who will say the rates will remain unchanged. There seems to be a split between either remaining unchanged and changed," says Loos.
He adds for the property market, the interest rate announcement will not have a meaningful impact.
Loos believe the property market will remain on a "slow self-correcting path", with the market already seeing a decline in the industrial and residential properties.
"It is below the general inflation in the economy."
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