The decision by the South African Reserve Bank’s Monetary Policy Committee today (Thursday 23 May 2019) to leave interest rates unchanged has come as a “very welcome surprise” to many South Africans and will allow households to avoid straining their budgets even further than they are currently, according to Mike Greeff, CEO of Greeff Christies International Real Estate.
Repo rate is the rate at which the South African Reserve Bank lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.
“Leaving rates untouched means that it is not going to be more difficult for buyers to obtain loans or financing for their future homes. This is great news for the property sector as there are more potential buyers looking at the available stock and in short, the odds of selling your property quickly have improved,” he says.
“Now that the elections have come and gone with no major surprises, the government could be looking to let South Africans breathe before starting the more serious work of strengthening the economy through monetary policies.”