Interest rate cut by 50 bips

Yes confirmed on the Bank site.

"In the light of these developments the MPC views the prevailing conditions to be appropriate for further monetary accommodation to the economy that will not undermine the inflation outlook. The MPC has therefore decided to reduce the repurchase rate by 50 basis points to 5,0 per cent from Friday 20 July 2012."




http://www.resbank.co.za/Publicatio...22e-7125-4e55-bb65-56fd3333371e&sarbitem=5092
 
Saving something like R250pm myself... This almost tempts me to buy another property :p
 
Yay! Another whopping R260 per month extra in my pocket.
I'm not complaining though - every little bit helps.
Sucks for pensioners though.
 
Yea I wouldn't be too excited about this. They cut the rate because they see trouble coming, rather big trouble... Check Fin24/FinWeek or one of the others tomorrow for more.
 
Paul_S said:
Yay! Another whopping R260 per month extra in my pocket.
I'm not complaining though - every little bit helps.
Sucks for pensioners though.
Click to expand...
You're basically screwed no matter what if you're relying on interest for income. When it's high it'll generally be because inflation is high, so prices will be going up even faster.

Frikkenator said:
Yea I wouldn't be too excited about this. They cut the rate because they see trouble coming, rather big trouble... Check Fin24/FinWeek or one of the others tomorrow for more.
Click to expand...
They've been talking about the various factors in financial news for months.
 
By now pensioners should not be relying on interest for their income. We have had low rates for some time, and there are many other fairly safe investment opportunities available

One thing a .5% cut should improve the housing market. Bond rate is currently 9% I believe. Has not been 8.5%a for many years
 
chrisc4290 said:
By now pensioners should not be relying on interest for their income. We have had low rates for some time, and there are many other fairly safe investment opportunities available

One thing a .5% cut should improve the housing market. Bond rate is currently 9% I believe. Has not been 8.5%a for many years
Click to expand...

Prime is at 8.5 now, bond rates are variable.
 
Yay! A R0 saving because I put the same in every month anyway...
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X