Rate cut surprise

[Creag]

Gonna make things even tougher for pensioners.

too true

 

[davemc]

OMW, exactly how bad are the retail figures?

I know that I can no longer afford cheddar cheese. Biltong is now cheaper.

 

[boramk]

Good news indeed. Thank the ANC

Thank the Reserve Bank instead?

 

[milomak]

New governor appeasing the masses?

still the old governor good man

So just for allowing you the privilege of borrowing money the banks already make 3,5% :/

unless you have a below prime rate eg Prime - 2.5% etc

after this weeks data releases, i started to feel that the 50bp cut was on.

 

[LancelotSA]

OMW, exactly how bad are the retail figures?

Not sure if this is exactly what you were actually asking but retail sales are down.

Retail trade sales, at constant (2008) prices, for the second quarter of 2009 reflected a decrease of 6,0% compared with the second quarter of 2008, while sales for the second quarter of 2008 remained unchanged compared with the second quarter of 2007. Retail trade sales, at constant (2008) prices, for June 2009 reflected a decrease of 6,7% compared with June 2008.

If you are bored read more about retail trade figures here

Motor trade sales show the same slowing....

Motor trade sales for the second quarter of 2009 decreased by 15,6% compared with the second quarter of 2008, while sales for the corresponding period in 2008 increased by 8,0%.

The major contributors to the decrease of 15,6% were new vehicle sales (-37,7% and contributing -11,0 percentage points) and fuel sales (-16,7% and contributing -4,4 percentage points).

Motor trade sales for June 2009 decreased by 10,2% compared with June 2008, while sales for the corresponding period in 2008 increased by 6,2%.

Read more here

 

[Ou grote]

still the old governor good man



unless you have a below prime rate eg Prime - 2.5% etc

after this weeks data releases, i started to feel that the 50bp cut was on.

Prime - 2.5%
Where?

 

[milomak]

ah it's actually less 2%

EDIT: But that was when times were still good and banking funding costs were not as high. heard on the radio on the way home that Standard Bank, when it released its results, said that their average book was Prime less 0.8% compared to Prime less 1.6% I think for the same period last year.

 

[Sting]

Also negotiated Prime -2% (variable rate) on my mortgage bond a few years ago. Was dependant on earnings profile, other services used at bank, etc...

While I'm happy to accept the 50 basis points reduction, I don't think it was justified. Tito wanted to bow out on a good note!

All these strikes for wage increases at double the inflation rate are going to come back and bite us.

 

[semiautomatix]

Also negotiated Prime -2% (variable rate) on my mortgage bond a few years ago. Was dependant on earnings profile, other services used at bank, etc...

While I'm happy to accept the 50 basis points reduction, I don't think it was justified. Tito wanted to bow out on a good note!

All these strikes for wage increases at double the inflation rate are going to come back and bite us.

We could always strike against that as well. Doesn't that work for everything? Or... just maybe... the unions really don't understand the fundamentals of economics?

 

[killadoob]

Was it not at like 28% at one point under the old government? i was a bit young but i remember us losing a house because the rates went up so high it become unaffordable.

 

[CyraxHB]

Was it not at like 28% at one point under the old government? i was a bit young but i remember us losing a house because the rates went up so high it become unaffordable.

AFAIK the highest the repo rate has been is about 26% in 1998.

 

[milomak]

We could always strike against that as well. Doesn't that work for everything? Or... just maybe... the unions really don't understand the fundamentals of economics?

Maybe they understand the fundamentals . i know that excluding bonuses, my basic salary increases in the last 3 years have been below or at the official inflation. Meaning in real terms, i have been getting salary decreases if you look at my basic alone.

and so for those people who are non-union workers who i have worked with across those years who have not received bonuses, they would have done well to be unionised.

 

[Ou grote]

ah it's actually less 2%

EDIT: But that was when times were still good and banking funding costs were not as high. heard on the radio on the way home that Standard Bank, when it released its results, said that their average book was Prime less 0.8% compared to Prime less 1.6% I think for the same period last year.

I'm getting -1.7%

...
While I'm happy to accept the 50 basis points reduction, I don't think it was justified. Tito wanted to bow out on a good note!
...

Probably did it out of spite.
The new women can't lower rates for 3 years probably, the only way is up now.

 

[medicnick83]

I was at a client yesterday and they were going crazy when they got the e-mail.