2009 Interest rate cuts

I agree, except for aug & oct, they should cut by 50bps as well for a total of 400bps for the year! With GDP growth falling rapidly,they need to be more aggressive in their cuts!!
 
Something else to take into consideration is the recent speculation that there won't be any income tax cuts for individuals this year. They were dicussing it on the radio last night and mentioned that with the ANC's new manifesto additional funds will be required to get the national budget to balance.

So while I agree that we will see some decrease in the interest rate this year (my guess 3-3.5%) this will be countered by no cuts in personal income taxes.
 
Arzy said:
So while I agree that we will see some decrease in the interest rate this year (my guess 3-3.5%) this will be countered by no cuts in personal income taxes.
Click to expand...

a rate cut of 3% is around R4K on my bond - a 1% tax cut, no more than R500.
 
Mboweni won't drop more than 2.5% the whole year, and also he probably won't drop more than 50 basis points at a time...
 
Good news all around - 50 basis points = R500 for me !!!!!!
 
Did interest rates just go down? What's prime now? 15%?
 
If we will see a 100 basis point drop, this week will be the best week to see it, from there on, it will be no more than 50bp.
 
you predictions are based on what??? there are so many factors to consider here and its just pure speculation giving predictions for the whole year,

the biggest item that will influence the repo rate is the inflation rate, Tito's objective is to control inflation, as inflation comes down (as we have recently seen) he will lower the interest rate gradually but don't expect a 100 point drop, no chance, that will push inflation too hard, i reckon you might get 200-250 points drop for the year assuming we get positive inflation data and stability in the markets
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X