The South African Reserve Bank (SARB) regulates our economy by lending money to the Commercial Banks at a set interest rate. This interest rate is known as the Repo Rate and is also referred to as the Repurchase Rate. The Commercial Banks then lend to their clients at what is known as the Prime Lending Rate.
The SARB’s Monetary Policy Committee has kept the Repo Rate unchanged at 6.75% in a unanimous decision. The announcement was made by the central bank’s governor Lesetja Kganyago at a media briefing in Pretoria late last week.
With the Repo Rate unchanged, the Prime Lending Rate will remain at 10.25%.
This news means that credit card interest, vehicle finance interest, and most importantly for our property-owning clients, home loan interest rates remain steady and unchanged. Therefore, business continues as usual, without you having to dip into profits, or deeper into your pockets to cover the additional charges had the interest rate continued on its gradual rise. So, good news for some, and possibly a good time to buy.
However, even when the interest rates rise, this signals opportunities for certain investors. The moral here is be prepared because “You cannot control the wind, but you can certainly adjust your sails.”
If you require assistance to start, manage, grow or structure your Property Portfolio, you are welcome to contact Clinton at firstname.lastname@example.org or the FinServe Property Team on 0860 994094 who will gladly assist.
In closing, if you are available and would like to participate, have a look at what the FinServe Team has initiated. We will be hosting a second session tomorrow CLICK HERE for more details.