Repo Rate Has Remained Unchanged
Category Property news
The recent repo rate has remained unchanged, keeping the repo rate at 3.5% and the prime lending rate at 7%. The Reserve Bank has lowered interest rates by 300 basis points since the Covid-19 pandemic hit us, in an effort to control its effects on the South African economy. Following yesterday's announcement from President Ramaphosa that we will be going into Level 1 of lockdown, we can expect the economy to slowly improve. One of the reasons the repo rate has remained unchanged is to attract foreign investors. With the easing of the lockdown and international travel being allowed, we can expect more traction from overseas buyers.
The question on everyone's lips is how much the cuts have actually helped to stimulate activity in the residential buy-and-sell property market, and could a further cut do any wonders? What we can say is that the Reserve Bank is making a concerted effort to lower interest rates in favour of the consumer. As a result of these efforts, consumers are grabbing this golden opportunity with both hands and are taking the leap into home ownership.
The current repo rate cut will make it easier for consumers to get credit and potentially buy a home. It is an ideal time for anybody wanting to invest in property, whether you are a first-time buyer or if you are wanting to diversify your portfolio.
COVID-19 has affected us all in various ways, but South Africans have unmatched resilience. We are nearing the finish line and we should all be proud of ourselves and how far we have come. With Heritage Day approaching, let's take time to celebrate our beautiful rainbow nation.
Author: Greeff
