Rate cuts...imminent?

[Lord Anubis]

Yes I used the word imminent. I decided to post this here and not in CA 'cos logic prevails better here. So what do you think? Are we in for a few drastic cuts or what? How many %? When? My bet is 1% at a special MPC meeting next week or even 2% with another 2% in April ..then a freeze and then maybe another 2% before year end bring us back down to 8% or even lower to 7%. Your thoughts please.

 

[kiepie]

Yes I used the word imminent. I decided to post this here and not in CA 'cos logic prevails better here. So what do you think? Are we in for a few drastic cuts or what? How many %? When? My bet is 1% at a special MPC meeting next week or even 2% with another 2% in April ..then a freeze and then maybe another 2% before year end bring us back down to 8% or even lower to 7%. Your thoughts please.

Well a special meeting could be anytime, and my guess it could be another 1% then.

Back down to 8%? The prime rate (what bank lends to us) was at that level back in 1973.

Unless you are referring to the repo rate (SARB lending to the banks) that was back in 2006.

 

[supersunbird]

Not that it would really affect me till the Jibar rate people have their quaterly meeting in April... but I'll love it. Except for my damn bakkie on fixed rate... ARG!!!!

 

[CathJ]

I know it's selfish, but I hope it doesn't drop too much. I feel that bank interest should be higher than inflation, which it wasn't a month or two ago.

 

[ToxicBunny]

I'm in two minds about htis..

Each cut brings me closer to being able to afford a decent house rather than an ok flat, but at the same time it lessens the countries attractiveness as an investment location.

 

[Arschloch]

Well, food inflation stands at around 17% , while the averige goods inflation comes in at below 10%. Yes I agree, the interest rate should drop at 1973 levels. Of course the food inflation will go at 20%+ but is OK with me. Only a relatively small portion of my income is spend of food Well, concerning the poor . . . F*** them. As long as they vote ANC . . .

 

[MielieSpoor]

...at a special MPC meeting next week...

Where did you hear (Read) about this meeting? Nothing was published in the newspapers from what I have seen...

 

[Lord Anubis]

There's several hints on Fin24. Search "Mboweni" and you'll see several references to a possible cut if growth data is down. 24 Feb??!!??

 

[kiepie]

There's several hints on Fin24. Search "Mboweni" and you'll see several references to a possible cut if growth data is down. 24 Feb??!!??

Mind posting a link, all I know of is that he said there could be a meeting before the one in April.

 

[rorz0r]

I'm in two minds about htis..

Each cut brings me closer to being able to afford a decent house rather than an ok flat, but at the same time it lessens the countries attractiveness as an investment location.

So it hits a low of 10%, you buy a nice house, then it goes up and you're f*cked...

 

[Claymore]

Each cut brings me closer to being able to afford a decent house rather than an ok flat, but at the same time it lessens the countries attractiveness as an investment location.

Heh. We could have 3% rates, and it would be (marginally) better than the US or UK.

 

[Bondizzo]

I think the rates are fine, matter of fact they should go back to 12%. With every rate cut I earn less on my investments.

 

[LandyMan]

Special meeting in the next two weeks, 1% cut.

Another 1% in April ... then it will be on old for 2-3 months, with another 1% cut then.

It should bottom out at about prime = 10.5% by the end of the year

 

[Lord Anubis]

Sorry cant post link..using mobile atm..

 

[kiepie]

I think the rates are fine, matter of fact they should go back to 12%. With every rate cut I earn less on my investments.

Prime is 14% now. Are you referring to what the bank gives you?

 

[Bondizzo]

Prime is 14% now. Are you referring to what the bank gives you?

Yeah, when the lending rate drops, the giving rate drops aswell

 

[Lord Anubis]

Was said again on CNBCA tonight. Apparently Mboweni is eyeing next weeks GDP data. If its below 1.2 down we get 100bps if 2 then 200!

 

[kiepie]

Yeah, when the lending rate drops, the giving rate drops aswell

I know! But while we all talking about the SARB dropping rates, the 10.5% (repo).

 

[Lord Anubis]

Gdp data out tomorrow

 

[Lord Anubis]

GDP down 1.8% ...inflation data tomorrow!!!