28 May 2009 MPC Rate cut - NB!

I like him... :)

While the governor is busy bashing the banks, United Democratic Movement (UDM) President and MP Bantu Holomisa told Realestateweb.co.za that the governor is so "fixated on inflation targeting" and has lost touch with the fact that South Africa is still a developing economy.

Instead of cutting interest rates by 100 basis points on Thursday, the governor should cut by as much as 6%, this will speed up economic recovery and improve the housing market, he says.

MP Holomisa says that the MPC needs to be flexible with interest rate cuts so would-be property buyers and homeowners can afford to have a roof over their heads.
Click to expand...
 
6% would be a bit much and I think foreign investors would raise an eyebrow or three and think we may have fallen off the edge in terms of monetary policies in this country (which have been good and solid)...but 6% would be nice, that car im looking at would all of sudden be a possibility :D
 
Decent enough... still means I can't afford the house I want tho... oh well.
 
:D 100bp 0r 200bp makes no difference too me I don't have any monthly payments anyway. I don't think he could have gone with 200bp even if he wanted too because it will look like he is panicking. Rather drop it 100 now and another 100 in June.
 
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