Interest Rate Cut

Thanks Turbo, after all the experts forecast no cut I decided not to follow the news... this is a really nice little surprise. Should provide a bit of relief when all the tax stuff kicks in.
 
Diversionary tactics from the Eskom fubar, petrol raping and ANCYL drivel.
 
Next Q from the financial noob: where does one find an online calculator to determine how monthly re-payments of e.g. bond will be affected by this ?
 
blunomore said:
Next Q from the financial noob: where does one find an online calculator to determine how monthly re-payments of e.g. bond will be affected by this ?
Click to expand...

My home loan is with Nedbank. Their calculator section has a bond repayment section where you can specify the interest rate.

The new rate will not be 10%

All banking sites have these tools to calc repayments.
 
Eh, thought that keeping it steady would have been best. Inflation is only down to 5.7%, and South Africans aren't the best at restraining themselves. I just hope that this doesn't lead to a whole bunch of reckless spending.
 
Divide your current repayments by 16 - that is the saving. It is quick and dirty, if you want it precise, do it the hard way!
 
Moederloos said:
Divide your current repayments by 16 - that is the saving. It is quick and dirty, if you want it precise, do it the hard way!
Click to expand...

So I pay R3200 per month for my car, my saving would be +- R200? :confused: Or does the /16 only apply to homeloans? :o
 
cr@zydude said:
Eh, thought that keeping it steady would have been best. Inflation is only down to 5.7%, and South Africans aren't the best at restraining themselves. I just hope that this doesn't lead to a whole bunch of reckless spending.
Click to expand...

We still have an incredibly high interest rate. Don't forget that places like the states have Prime at something like 0.5%

I cannot see that a half percent cut is going to lead to any spending splurge.

As someone else said, at best it could attempt to cushion the double whammy from petrol and Eskom in April
 
Fazda said:
We still have an incredibly high interest rate. Don't forget that places like the states have Prime at something like 0.5%

I cannot see that a half percent cut is going to lead to any spending splurge.

As someone else said, at best it could attempt to cushion the double whammy from petrol and Eskom in April
Click to expand...

I know that the EU, USA and Japan have much lower rates, around 1 - 2 %, but you need to look at how responsive their spending patterns are to the interest rate. When an EU bank pushes up rates by 0.5% spending drops markedly, almost staright away. In SA, the rate goes up 3% before any real drop in spending.
 
Slootvreter said:
So I pay R3200 per month for my car, my saving would be +- R200? :confused: Or does the /16 only apply to homeloans? :o
Click to expand...

Cars are a different story. In all the rate decreases in the last cycle, I probably saved R80 a month overall.

useless.


Hmm, might be 1/16 for 1% - too tired to check.
YMMV
 
Last edited:
blunomore said:
Thanks.

On that calculator, does "optional topup" refer to additional payments one can make ?
Click to expand...
Yes, that's additional payments

Claymore said:
No, it's not.

The 50 basis points means that the prime interest rate dropped by 4.76% (from 10.5% to 10%). The repo rate dropped by 7.14% (from 7% to 6.5%).
Click to expand...
Happens every time it's announced, no one remembers the basis points bit:)
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X