Interest rates dropped by 100bps

[dlk001]

Reserve Bank Governor Tito Mboweni gave consumers another breather by dropping rates by 100bps, following the example of world markets. Most economists were expecting him to drop rates by this much.

He did, however, warn that more meetings may not mean more rate cuts.

Mboweni mentioned at the press briefing that two quarters of negative growth are possible.

Mboweni raised the following before giving his decision:

* Global economy has had a dramatic slowdown
* SA economy has not escaped the slowdown
* Balance of risk to inflation have changed somewhat
* More favourable inflation outlook for the medium term
* Inflation will decline below 6% in Q3
* CPI to average 8.1% in Q1
* Inflation will average 5.3% in Q4 2010
* Inflation will increase moderately in February before increasing its downward trend
* Current-account deficit narrowed to 5.8% in Q4 2008, may not be sustained
* Domestic demand conditions have deteriorated
* Household debt moderated to 76.4% in Q4
* Administered prices, food pose inflation risk

http://www.moneyweb.co.za/mw/view/mw/en/page87?oid=282306&sn=Detail

 

[killadoob]

Should have been 2 but i won't complain.

 

[Albereth]

Now all we need to hear is that Shabby Shaik has justified being on medical parole and the taxi drivers made like lemmings into Haarties and the day will be perfect.

 

[RoosTa]

Hurah!

the taxi drivers made like lemmings into Haarties

Lol we'll have an infestation of mutated swamp monsters!

 

[R13...]

good news indeed,
now i can afford to eat out

 

[Beetman]

Reserve Bank Governor Tito Mboweni gave consumers another breather by dropping rates by 100bps, following the example of world markets. Most economists were expecting him to drop rates by this much.

He did, however, warn that more meetings may not mean more rate cuts.

Mboweni mentioned at the press briefing that two quarters of negative growth are possible.

Mboweni raised the following before giving his decision:

* Global economy has had a dramatic slowdown
* SA economy has not escaped the slowdown
* Balance of risk to inflation have changed somewhat
* More favourable inflation outlook for the medium term
* Inflation will decline below 6% in Q3
* CPI to average 8.1% in Q1
* Inflation will average 5.3% in Q4 2010
* Inflation will increase moderately in February before increasing its downward trend
* Current-account deficit narrowed to 5.8% in Q4 2008, may not be sustained
* Domestic demand conditions have deteriorated
* Household debt moderated to 76.4% in Q4
* Administered prices, food pose inflation risk

http://www.moneyweb.co.za/mw/view/mw/en/page87?oid=282306&sn=Detail

yay!!!!

Will bring down my flat repayment a lot

 

[gregmcc]

Excellent - I'm now saving more a month from the drops in interest rates than I got from my last salary increase

 

[PCW]

Should have been 2 but i won't complain.

There will be another 1% in April be patient

Need to chew more data ...

 

[sox63]

Nice one, even though I was hoping for more.

Extra case of beer this weekend, and the first one is dedicated to Tito and company.

 

[Alan]

My poor mother has just retired. She owes nobody any money but now she's getting punished for it by those that lived above their means in credit

 

[placebo]

Good news.Perhaps but I dont think so.The rate drop of 1% will take 4 to 6 months to filter through the economy,the motor industry,the furniture industry and housing market are in dire straights. Who in their right mind will not rather pay off debt with the amount they are currently saving with the interest rate drop.The petrol price increase(and mow the sudden drop) weakness in the rand plus food prices which do not come down as manufacturers of food which is a basic commodity first blamed the petrol price,weakness in the rand and are now after pure profit.None of these inflationary pressures are within the consumers control.It is about time the Reserve Bank rethink their monetary policy.I feel very sorry for the poorer people in S.A as most of them cannot afford to live.Do you honestly believe that the moneylenders in S.A are going to drop their exorbitant interest rate(of which most of them are indebted to)will drop their interest rate.I think not.

 

[manesan]

My poor mother has just retired. She owes nobody any money but now she's getting punished for it by those that lived above their means in credit

How is she being punished? Interest rates will always fluctuate. It cannot and will not stay high for retirees or investors perpetually.

 

[Lord Anubis]

My poor mother has just retired. She owes nobody any money but now she's getting punished for it by those that lived above their means in credit

Yes it is a tough time for investments..on the bright side..some stocks rose by at least 10% this week. Always look on the bright side...

 

[antowan]

In short it came down by 1%