DURBAN - The Reserve Bank Monetary Policy Committee’s (MPC) decision to keep the repo rate unchanged at 6,5 percent (mortgage rate at 10 percent) is disappointing, said Samuel Seeff, chairman of the Seeff Property Group who again called for bold action to stimulate the economy and property market.
We have only had one 25bps rate cut this year (in July) and it is simply not enough, he says.
"There is ample support for a further rate cut. The second quarter GDP growth of 3.1 percent was better than expected and inflation, despite slightly up to 4,3 percent in August, remains fairly benign and well within the bank’s target range of 3 percent -6 percent," Seeff said.
The broader macro-environment has also seen the US Fed cut the interest rate.
This follows the bold move by the European Central Bank to reduce its rate to minus 0.5 percent as part of a package of monetary policy stimulation.