Rate cut next week!

[Fuma]

It's 1/12 of 1%, so R350K is R291.

So the formula is (1/12 X 350 000) / 100 = 291, I guess?

 

[Abe]

What time is the speech?

 

[sand_man]

What time is the speech?

Isn't it normally 3pm?

 

[Ou grote]

15:30

 

[R13...]

15:30

damn it! i thought it's 14:00... now we wait.

 

[wesleyfraser]

50 basis points down... Yippee

 

[Abe]

I am happy. Didn't think he would be brave enough to cut more.

 

[Ou grote]

Ive been right more times than you
Its 1%

Er no.
I haven't been wrong yet.

And u just were.
again

 

[Lord Anubis]

0.5 bleh! Was sure it would be 1%, FFS!

 

[coolio24]

I'll take what I can get

 

[JK8]

Er no.
I haven't been wrong yet.

And u just were.
again

No no, you miss understood, the 1% is the amount of times youve been correct with your predictions... now it 5% congrats!

Yay 0.5% drop, I knew it!

 

[R13...]

i'm happy with 0.5%, there's no way in hell we were getting 1% 1-shot!

 

[DJ...]

Remember that the cut will negatively effect the exchange rate which will result in a higher inflation rate, but right now, I think the economy desparately needs an injection of some sort.

The rate cut itself will fuel inflation - it's a double edged sword considering interest rates are calculated on an inflation basis. However inflation has eased off and the higher interest rate was not sustainable. But the move is a sensible one IMO. Higher interest rates were hurting corporates as well...

 

[Ou grote]

No no, you miss understood, the 1% is the amount of times youve been correct with your predictions... now it 5% congrats!

Yay 0.5% drop, I knew it!

Ah, I see, weren't u applying for the position of Minister of Information in Zimbabwe?

 

[Abe]

"This decision confirms our view that economic policy is now directed at averting a prolonged slowdown in the economy."

Sorry, comment above wasn't by Mboweni

FFS, what a twit. If that was the policy then they should have cut by 1%. I am happy that we got something but these idiots really need to think a little further. The guy from FNB was right. There needs to be a cut now, so cut. If inflation starts climbing again, then increase at that time.

 

[Abe]

The rate cut itself will fuel inflation - it's a double edged sword considering interest rates are calculated on an inflation basis. However inflation has eased off and the higher interest rate was not sustainable. But the move is a sensible one IMO. Higher interest rates were hurting corporates as well...

It will effect inflation but, IMO, not by much. Consumers are very nervous and are not spending. A 50 basis point cut won't do much to help that. There is also a lag between the official rate and what is happening on the ground and I think that the inflation rate will start to decline faster in the coming months as the effects of the slowing economy, the previous increases and the lower oil price start filtering through. Get ready for a bumpy ride.

 

[DJ...]

It will effect inflation but, IMO, not by much. Consumers are very nervous and are not spending. A 50 basis point cut won't do much to help that.

At this time of year - it will have a much greater impact than you think - IMO...

 

[JK8]

At this time of year - it will have a much greater impact than you think - IMO...

Yip and the petrol price dropped so more spending on the cards!

 

[Abe]

At this time of year - it will have a much greater impact than you think - IMO...

Then people are dumber then I thought. Our family has said that we are only giving token Christmas presents.

 

[Abe]

Yip and the petrol price dropped so more spending on the cards!

For us, the petrol price resulted in a bigger saving monthly then the interest rate cut.