The SARB is expected to begin cutting interest rates next month, which is great news for South African homeowners’ pockets.
The South African Reserve Bank is expected to start the rate-cutting cycle next month, with two 25bps cuts expected by year-end, meaning R475 per month relief for the average homeowner with a bond repayment.
This has led to reduced disposable income, putting pressure on consumers and impacting overall economic spending. This broadly reflects South Africa’s forward rate agreement , which is now factoring in almost an 80% chance of a 25bp interest rate cut at the September MPC meeting and just above a 40% chance of another at the November MPC meeting.
This would result in a total drop of the Fed funds rate by 175 basis points by the end of the first half of 2025, with an additional 25 basis point cut anticipated in July 2025, and a further cut of 25 basis points by October 2025, resulting in a total 2.0% reduction. “A rate cut will relieve consumers and property buyers. In addition to lowering the cost of debt and freeing up more from household budgets, it will also bring down the cost of homes,” said Seeff.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: Chidimma Adetshina Withdraws From Miss South Africa Pageant'...After much careful consideration, I have decided to withdraw myself from the competition for the safety and well-being of my family and me.'
Read more »
South Africa: Cyril Ramaphosa's Speech to Parliament Listed South Africa's Old ProblemsAnalysis - South African President Cyril Ramaphosa's opening of parliament speech successfully captured the spirit of a diverse and cohesive multi-party government ready to get down to work. But it failed to tell South Africans how the new dispensation will do things differently, and better.
Read more »
South Africa: Expectations Versus Reality - the Use of Generative Ai in South Africa's 2024 ElectionAnalysis - By now you've heard that 2024 is the ultimate election year. With over 60 countries around the world heading to the polls, concerns about generative artificial intelligence (AI) and its effects on electoral integrity have received plenty of media coverage.
Read more »
South Africa: Higher Education Faces Many Challenges in South Africa - 3 Priorities for the New MinisterAnalysis - When South African president Cyril Ramaphosa named Nobuhle Nkabane as the minister of higher education on 3 July 2024, many people I know in the sector had to Google her name. Dr Nkabane had been deputy minister of mineral resources and energy since August 2021.
Read more »
South Africa: Chinese E-Commerce Companies Popular in South AfricaRotondwa Mbadaliga is a self-professed 'shopping addict.' The 25-year-old South African fashion influencer says she is a huge fan of Chinese-linked e-commerce companies Shein and Temu because she can get the latest trends at the cheapest prices delivered straight to her door.
Read more »
The two most expensive cities for rent in South AfricaTwo of South Africa’s three capital cities charge the most for rent in South Africa.
Read more »