SA Reserve Bank hikes rates

[Other Pineapple Smurf]

And do it begins. Pretty soon articles on home owners forfeiting and losing their houses.

Oh no, my bond I just signed yesterday at the attorneys is now R50 more a month. Will need to sell my left pineapple now and abandon the property.

Jokes aside, the opportunity to make a dent in debt is coming to an end for many consumers as we start seeing more increases as their disposable income narrows.

I used these low rates to pay off my car, kick my overdraft in its nutsack and buy another property.

 

[Neuk_]

It was to be expected, luckily it is only my car and our house that are financed, with a large portion paid off already.

 

[Thor]

The wrong disicion and we make it.

Every single time.

 

[RonSwanson]

The wrong disicion and we make it.

Every single time.

how so?

 

[Thor]

Our inflation does not come from anything local , it only comes from external factors. This increase and the ZAR is still down 0.75% . Sorry SAReserveBank , but this is beyond stupid. Unless you can get oil down or solve international supply issues, you cant get inflation down.

 

[Kosmik]

Yes, because a failing economy needs more rate hikes.... stupid.

 

[Johnatan56]

Our inflation does not come from anything local , it only comes from external factors. This increase and the ZAR is still down 0.75% . Sorry SAReserveBank , but this is beyond stupid. Unless you can get oil down or solve international supply issues, you cant get inflation down.

And why would inflation source not being local matter? That said, most local is pushed up because a lot of it relies on external, how many things on the shelves are purely local?
It was completely expected that the reserve bank increased it by 0.25%, and it will do so for every quarter of 2022 and probably 2023.

 

[Pegasus]

Our inflation does not come from anything local , it only comes from external factors. This increase and the ZAR is still down 0.75% . Sorry SAReserveBank , but this is beyond stupid. Unless you can get oil down or solve international supply issues, you cant get inflation down.

Lol

 

[STORMERSFAN]

So is now a good time to buy or sell a property?

 

[rvZA]

Oh, and yeah, keep an eye on real inflation, not only government measured baskets. As our debt becomes more expensive, so does that of businesses. If business' debt rise, where do they get the money from?..... any guesses?

 

[Sinbad]

And why would inflation source not being local matter? That said, most local is pushed up because a lot of it relies on external, how many things on the shelves are purely local?
It was completely expected that the reserve bank increased it by 0.25%, and it will do so for every quarter of 2022 and probably 2023.

Controlling the money supply (via interest rates) is only really effective against demand-pull inflation - ie, it reduces discretionary spending. Inflation caused by the prices of imported basics like fuel going through the roof won't really be affected. all it will do is stagnate the economy (more).

 

[WollieVerstege]

Controlling the money supply (via interest rates) is only really effective against demand-pull inflation - ie, it reduces discretionary spending. Inflation caused by the prices of imported basics like fuel going through the roof won't really be affected. all it will do is stagnate the economy (more).

It is shocking for me how few people understand the difference between demand pull and cost push inflation and which intervention controls what. Most don't even know there are 2 different types of inflation.
Then I look at our education system and it makes sense.

 

[Baise]

So is now a good time to buy or sell a property?

Good time to buy a distressed property if you a cash buyer.

 

[Gaz{M}]

So is now a good time to buy or sell a property?

Yes, but not in SA.

 

[PaulMurkin]

Article incoming

"This is how much more you will pay on your home loan."

That's how click-bait works on a site that is a media mogul's paradise but has a forum by chance.
Just ignore it.

Regarding debt though, glad I don't have any... so the ANC can get rekt...

 

[Other Pineapple Smurf]

Yes, but not in SA.

Why?

Been hearing "they" will take our property since the 80's.

 

[rvZA]

It is shocking for me how few people understand the difference between demand pull and cost push inflation and which intervention controls what. Most don't even know there are 2 different types of inflation.
Then I look at our education system and it makes sense.

South Africa is sitting in a different position and none of the normal business principals related to inflation will apply here.

Prices of goods, across the board, at an alarming rate, has been rising the past year. Millions of people lost their jobs. Millions more are no longer getting increases and bonuses and many took pay cuts. There is no need to quell consumer spending, because people cannot afford the goods on the shelves in any event.

Credit bureaus, banks and businesses have been reporting struggling consumers and noted concern. Increasing interest rates while people already struggles to repay debt is not always the best decision and other factors affecting the economy, and even more so inflation, will now come into play, which would not have been the case had it not been for the effects of Covid on the economy.

We will see how this plays out.

 

[WollieVerstege]

South Africa is sitting in a different position and none of the normal business principals related to inflation will apply here.

Prices of goods, across the board, at an alarming rate, has been rising the past year. Millions of people lost their jobs. Millions more are no longer getting increases and bonuses and many took pay cuts. There is no need to quell consumer spending, because people cannot afford the goods on the shelves in any event.

Credit bureaus, banks and businesses have been reporting struggling consumers and noted concern. Increasing interest rates while people already struggles to repay debt is not always the best decision and other factors affecting the economy, and even more so inflation, will now come into play, which would not have been the case had it not been for the effects of Covid on the economy.

We will see how this plays out.

Yes, our inflation is primarily cost push inflation through administered prices that requires fiscal intervention, not monetary. In fact in our current economic state I would argue that raising interest rates are in fact inflationary in its own right.

 

[surface]

Why?

Been hearing "they" will take our property since the 80's.

It is imminent after 'driven to the sea' event.

 

[RedViking]

How will this affect a homeloan that was previously 7.1%, 900 000, 20 years, full amount?