Further repo rate cut will provide impetus to housing market activity

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With headline consumer inflation down to 2.8% last month , which is significantly lower than 3.8% in September and the lowest since February 2021, the MPC was likely to reduce the repo rate by at least a further 25bps, says Dr Andrew Golding, chief executive of the Pam Golding Property group. This takes the prime rate to 11.25%, a level last seen in April 2023.

“Lower rates make purchasing a home more affordable and also encourage those who would like to move for retirement, downsizing, and relocating for various reasons, who had paused potential acquisitions due to the higher interest rate environment, to commit to purchasing decisions. “A series of petrol price cuts have also played a key role in dampening overall price pressures. While the November increase in fuel prices was a temporary setback, initial indications are for a major R2 per litre drop in prices in December , which will reinforce the current easing in prices.

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