Another monetary policy committee meeting, another interest rate hike. The prime rate is now 11.75%, more than the average return delivered by the JSE over the past five years even on a total return basis .
Before you fetch the pitchforks and torches, I’m well aware that I just took a spot interest rate and compared it with an average return in a different asset class over a period of time. I’m not for a second suggesting that the average return over the past five years would’ve been better in a notice deposit than on the JSE, as interest rates weren’t high enough over the period in question...