Lord Anubis
Expert Member
Pro rata does not apply to monthly debit runs such as house payments. I do get it but I am talking about one thing and these others..well..??!!
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30 April 09 MPC Rate cut - NB!
- Thread starter Lord Anubis
- Start date
Lord Anubis
Expert Member
Ok let me put it this way...if a 1% drop is announced on 30 April, in theory a house of R1M will be R750 a month less/cheaper (as per debit order) as of 1 May! DJK..help me explain my point..
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I'm with milomak and co on this one Lord Anubis. The rate is calculated daily and the interest rate change will reflect on a pro-rata basis afaik. I'm not altogether clued up on the retail banking side however I'm not following your argument so can't really help explain it any better. Lets change the dates - if the reserve bank adjusts rates on the 20th and they only reflect on the bank's side on the 22nd. If your debit orders are paid in arrears on the 21st, then sure you could argue that the rate will not impact that month's payment, however that's more like a semantic argument than anything else. However that is unlikely in this case, where the rate is being adjusted at the end of the month.
Why do you believe that the rate change would take a month to reflect?
Why do you believe that the rate change would take a month to reflect?
Pro rata does not apply to monthly debit runs such as house payments. I do get it but I am talking about one thing and these others..well..??!!
pro-rata does apply to cars and houses.
Lord Anubis
Expert Member
Now I give up 
Lord Anubis
Expert Member
Err hmmm, thanks but clearly with your grade 8 brain, you clearly don't understand debit orders on house payments...its not like your psp payment that your Ma pays for you based on your "daily" dish washing. When you are big one day and have a house payment and the Mpc drops rates and your "monthly" debit order is subsequently less you will understand..you kids are hilarious
he-he
Except if you are debt free and rely on the interest for investment...I give up...
at least we're all in agreement that the interest drops are great news
well sir, i concede to your highly advanced intellectual argument that has struck down all my points with indisputable fact. one day i hope to attain the sharp mind that you clearly hold and which will clearly lead you to becoming a master of finance along the likes of bernie maddoff.Err hmmm, thanks but clearly with your grade 8 brain, you clearly don't understand debit orders on house payments...its not like your psp payment that your Ma pays for you based on your "daily" dish washing. When you are big one day and have a house payment and the Mpc drops rates and your "monthly" debit order is subsequently less you will understand..you kids are hilarious
Lord Anubis
Expert Member
@ milomak..finally some sense spoken..no hard feelings I hope
Lord Anubis
Expert Member
Heard today most banks are factoring 100bps cut for 1 May debit run on all outstanding creditors ..
Ou grote
Honorary Master
Bona Botse
A little insight goes a long way
thatdamnJoe
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you can choose when to do your debit runs...
QX6700RULZ
Expert Member
1st May is a public holiday so surely the run will only be on the second or even the 4th since the 2nd is a Saturday
Lord Anubis
Expert Member
Talk is shifting to 150-200 bps , on condition CPI comes in at or below 8% on 29 April.
, on condition CPI comes in at or below 8% on 29 April.
Talk is shifting to 150-200 bps
that will be nice.