JOHANNESBURG - Mike Greeff, CEO of Greeff Christies International Real Estate says that the South African Reserve Bank's (Sarb) monetary policy committee's (MPC) decission to keep the interest rates for South Africa unchanged is an encouraging sign’.
Sarb Governor Lesetja Kganyago announced today the bank's latest decision on interest rates following the three-day meeting of the MPC which he chairs.
Kganyago announced that Sarb would be keeping interest rates unchanged at a media briefing held today, with three members of the MPC preferred to keep the repo rate on hold and two preferred a cut of 25 bps.
Greeff explains that the MPC decision is an encouraging sign.
He said, "It means that the committee does not intend to make waves in the economy ahead of the busiest retail period of the year. The steady interest rates also mean that potential property buyers are better able to budget and plan for the year ahead."
"While lenders are using very strict criteria to assess loan applications, it is still quite possible for applicants to achieve a favourable outcome. The unchanged repo rate paired with the decrease in the fuel price should result in consumers not being stretched too thin financially over the holiday period."
Greeff further said, "Direct and indirect foreign investors will also be able to invest with more certainty knowing that the exchange rate will not experience drastic, unexpected fluctuations. President Ramaphosa also announced that there will be 17% more investment capital flowing into the economy than last year. This will result in 412 000 new jobs being created over the next five years.”