The presently flat interest rates give consumers an opportunity to get into better financial shape by structuring personal finances ahead of the festive season and the New Year. Ester Ochse, Channel Head at FNB Financial Advisory says how people manage finances over this period could impact their financial wellbeing over the next few months, going into the New Year. "Some people might use this period to tighten financial control, others will pursue investment opportunities but you also … [Read more...] about Financial boxes to tick while interest rates are on hold
interest rates
Interest Rates to continue rising
With South Africa's rising inflation, the Reserve Bank says it is necessary to raise interest rates. "Tolerating additional inflation in the short run could require larger interest rate adjustments later, with proportionally greater costs for the economy. Higher inflation would also have its own economic costs by damaging competitiveness, eroding living standards and weakening confidence," said the Reserve Bank. In its April Monetary Policy Review, the Reserve Bank said the changes in … [Read more...] about Interest Rates to continue rising
Interest rates will rise on back of poor rand – experts
Nedbank's economic unit said on Wednesday that in an environment with a rapidly deteriorating inflation outlook, the South African Reserve Bank (Sarb) would have no choice but to raise rates to contain inflationary expectations and restore financial stability. This was in reaction to the announcement by Statistics SA that South Africa's annual consumer price inflation rose to 5.2% in December 2015. This was in line with expectations and 4 percentage points higher than November's 4.8% rise. It … [Read more...] about Interest rates will rise on back of poor rand – experts
Expected 1st Quarter interest rate hikes not good news
Manufacturing production decreased by 1% in November 2015 compared with November 2014, Statistics South Africa announced on Tuesday. This was mainly due to lower production in the metals industry, which brought down the total by 1.3 percentage points, having contracted by 7%. Seasonally adjusted manufacturing production decreased by 1.2% in November 2015 compared with October 2015, following month-on-month changes of -1.7% in October 2015 and 2.3% in September 2015. In the three months … [Read more...] about Expected 1st Quarter interest rate hikes not good news
New Vehicle Sales predicted to decline further
The Reserve Bank has hiked the interest by 25 basis points, bringing the effective repo rate to 6.25%. The prime lending rate will change to 9.75%. The rate hike will affect buyers who have vehicle finance agreements structured around a linked interest rate. Interest on these loans will be recalculated, and account holders will be notified of the increase in their monthly instalment. "Although this increase is small, with a minor effect on the monthly instalment, buyers should not downplay … [Read more...] about New Vehicle Sales predicted to decline further
Reserve Bank likely to keep rates unchanged – expert
The Monetary Policy Committee of the SA Reserve Bank (Sarb) is likely to keep interest rates unchanged at its meeting on Thursday, according to international market research company Citi Velocity. "Our baseline forecast is that the repo rate will remain unchanged at 6%. That said, it is another close call," the company said in an overview. The Sarb will only hike if it's inflation profile results in a two-quarter breach (extended) and we see this unlikely, Citi Velocity said. "The … [Read more...] about Reserve Bank likely to keep rates unchanged – expert
SARB could be forced into more rapid interest rate hiking
"There are some things that are different between now and the end of the early-1980s residential boom, but some are ominously similar," says FNB Household and Property Sector Strategist John Loos. While the residential market is no longer "booming" in terms of demand or house price growth, it remains in "boom time" territory" when it comes to the level of house prices in real terms (i.e. when we adjust house prices for consumer price inflation over time). Real house prices are only … [Read more...] about SARB could be forced into more rapid interest rate hiking
SARB increases repo rate by 25 basis points
The South African Reserve Bank's (Sarb) Monetary Policy Committee (MPC) hiked the repo rate by 25 basis points to 6% per annum, effective from 24 July 2015, its governor Lesetja Kganyago announced on Thursday. Banks will raise their prime lending and variable mortgage interest rates by the same magnitude to 9,5% per annum, according to Jacques du Toit, a senior economist at Absa. "The Reserve Bank remains concerned about the outlook for economic growth that is constrained by severe … [Read more...] about SARB increases repo rate by 25 basis points
Interest Rate Hike ‘not expected’ today
Indebted South Africans may breathe a sigh of relief if the South African Reserve Bank's Monetary Policy Committee decides not to hike interest rates on Thursday. South African inflation having risen to 4.5% in April and not to 4.7% as expected has actually taken the heat off the Reserve Bank to raise interest rates at its Monetary Policy Committee (MPC) meeting on Thursday, according to global foreign exchange house Citi. This is from 4.0% in March and the second downside surprise since … [Read more...] about Interest Rate Hike ‘not expected’ today
SARB urged to be ‘bold’
The SA Reserve Bank (Sarb) is caught between a rock and a hard place regarding the upcoming interest rates decision by its Monetary Policy Committee (MPC) on Thursday, according to George Herman, head of South African portfolios at Citadel Investment Services . Growth is under pressure and continuously being marked lower, whilst inflation is on the rise again. This stagflationary bind makes any one of three policy moves possible, but only one practical, he told Fin24. The Sarb could be … [Read more...] about SARB urged to be ‘bold’
We will see the interest rate climbing over the remainder of the year
Later this month the Reserve Bank Monetary Policy Committee will hold its third meeting of this year to determine whether the prime interest rate will remain at its current rate or be changed. “With the weakness of the rand and rising inflation placing pressure on Reserve Bank, we will see the interest rate climbing over the remainder of the year,” Adrian Goslett, CEO of RE/MAX of Southern Africa, predicts. “At the previous Monetary Policy meeting held in March this year, Reserve Bank … [Read more...] about We will see the interest rate climbing over the remainder of the year
Low Interest Rates Stifling Economic Growth
Low interest rates and high inflation do not encourage economic growth, economist Chris Hart said on Tuesday. "Low interest rates in the developed world have become counter-productive.... Growth has to be funded. In South Africa where interest rates are at 5.5%, we cannot get growth going," said Hart adding that inflation was too high to stimulate growth. "Savings is a critical part of driving economic growth," he said. In September the Consumer Price Index (CPI) rose to 5.7%. Hart said … [Read more...] about Low Interest Rates Stifling Economic Growth
