South africa ravaged by repo rise

South Africa’s interest rate has hit a depressing new high…

The Country’s Monetary Policy Committee has raised the interest rate to a whopping 15%.

Andrew Golding, Chief Executive of the Pam Golding Property Group, bemoaned the hike: “The decision by the Monetary Policy Committee to raise the repo rate by 50 basis points is regretted as it will undoubtedly exert further pressure on consumers whose disposable income is already being eroded by rapidly rising fuel and food costs as well as proposed significant hikes in electricity tariffs. This is coupled with the major knock-on effects of load shedding on the already-slowing economy in general.

Consumers must be disciplined

Deon Lessing, marketing director of Betterbond, added: “From a property point of view, the impact will continue to be felt as this rate increase builds onto the preceding increases. I believe this increase will push the declining rate of growth in house prices even lower than previously anticipated.

“South Africans have already experienced tremendous amounts of pressure in light of the rising fuel prices, the new property tax, looming increases in electricity prices and rising food costs,” says Lessing. With the interest rate having risen once again, consumers must exercise discipline and manage their debt better.

“In light of numerous rate hikes experienced thus far, South Africa is dealing with a correcting market, whereby property will move back into a more realistic price range”.