21 May 2015
21 May 2015
21 May 2015
Comment: Kay Geldenhuys, manager of property financing processing at ooba: The decision to keep the interest rate the same is a great relief to South African property owners and the relatively low and stable interest rate environment that continues to prevail is good news for the residential housing market as it gives prospective homebuyers an opportunity to acquire property and secure home loan finance at an affordable cost of credit.
The South African property market outlook for 2015 remains positive with steady house price growth, stable and relatively low interest rates and increased lenders’ confidence, evidenced by the current trend of higher home loan approval rates recorded by ooba.
21 May 2015
Says Sizwe Nxedlana, chief economist at FNB: The repo rate was kept on hold today as inflation is well within the Sarb target band (3% - 6%) and economic growth remains under pressure.
However, we anticipate that inflation will begin to rise over the coming months due to a deterioration in the outlook for food and fuel prices.
Given the rising inflation profile, the Sarb is expected to hike the repo rate later this year and to continue on a gradual path of interest rate normalization during 2016. Consumers and businesses are advised to take this into account when planning their finances.
21 May 2015
FNB CEO Jacques Celliers: Even a small rate hike will sting later in the year. Consumers are already absorbing much higher fuel and electricity prices with a strong likelihood of further increases in energy prices.
Salary increases are also likely to be modest due to slower growth. For these reasons I urge consumers to reduce their borrowing and think carefully before taking a new loan.
21 May 2015
21 May 2015
21 May 2015
21 May 2015
Comment: Kelli Knutsen, marketing manager of DebtBusters - Recent client statistics released by DebtBusters have indicated that consumers entering into the debt counselling process and earning less than R5 000 per month are already financially crippled, as the average interest rate for unsecured credit agreements is 24%, the highest amount recorded in six years.
The unchanged rate will give the South African consumers with large amounts of debt a second chance to resolve their finances while they still can but will also provide no short-term relief, as the interest on these debts will stay the same.
21 May 2015
21 May 2015
Kganyago speech: While high wage settlements could underpin household consumption expenditure, this could be offset in part by inevitable reductions in employment.
According to Andrew Levy Employment publications, the average wage settlement rate in collective bargaining agreements measured 7.9% in the first quarter of 2015.
Trends in remuneration growth remain a concern to the MPC. Average wage and salary growth has been in excess of inflation for some time, imparting some degree of automatic indexation to wage settlements, and therefore maintaining higher levels of inflation.
The FNB/BER consumer confidence index declined sharply in the first quarter of 2015, signalling modest growth in consumption expenditure going forward.
21 May 2015
21 May 2015
Kganyago speech: Significant additional electricity tariff increases are likely to cause inflation to diverge significantly from the target range for a more extended period than our baseline forecast suggests.
Although the upward revision of the inflation forecast was relatively small, the persistence of medium term inflation at elevated levels and the deteriorating risks to the outlook are an increasing concern to the MPC.
21 May 2015
Kganyago speech: Any significant weakening of the exchange rate in reaction to US monetary policy tightening could cause inflation to diverge even further from target, and set in motion an exchange rate-inflation spiral.
The main risks to the outlook remain electricity tariff increases, the exchange rate and wage settlements.
21 May 2015
Kganyago speech: The MPC recognises that domestic inflation is not driven by demand factors that are more easily dealt with through monetary policy responses. Household consumption expenditure remains relatively subdued.
The rand remains vulnerable to global market reaction to US policy normalisation, particularly in the context of South Africa’s twin deficits.
21 May 2015
21 May 2015
Kganyago speech: Growth remains fragile, constrained by electricity shortages and low business confidence and the risk to the outlook remain on the downside.
But this cannot be solved by monetary policy alone. Monetary policy action will need to achieve a fine balance between achieving our primary mandate of price stability and not undermining growth unduly.
21 May 2015
21 May 2015
21 May 2015
While no surprise in view of the better than expected April inflation rate of 4.5% (against a predicted 4.7%), the decision by the Monetary Policy Committee of the Reserve Banks is nonetheless great news for first time home buyers especially.
That is the word from Samuel Seeff, chairperson of the Seeff property group who says that keeping the interest rate at what remains a five-decade* historic low of 5.75% (base home loan rate of 9.25%) has been an important driver of the growth in the housing market.
21 May 2015
21 May 2015
21 May 2015
21 May 2015
21 May 2015
21 May 2015
21 May 2015
21 May 2015
21 May 2015
21 May 2015
21 May 2015
21 May 2015