Will The Reserve Bank Cut The Repo Rate?
On the 28th of March, the Reserve Bank Monetary Policy Committee (MPC) will review the Repo rate (which affects how much % you pay on your credit).
Many economists are saying that consumers could be in for a Repo Rate cut.
The Consumer Price Index puts inflation at a very low 4.4% at the start of the year. Its lowest level since 2015. This is a key factor which the MPC consider when working out whether to raise or drop the Repo Rate.
The Rand has also had a strong showing against a purposely devalued Dollar which has helped offset the recent hike in petrol costs worldwide (and the huge increase in the Petrol Elvy which will soon impact prices countrywide).
The recent positive reaction to the new President and Budget Speech are also considered positive factors towards a possible rate cut.
Good For Investment Ratings?
A cut in Repo Rate and the recent political developments may prompt the rating agencies to consider a positive change in the current ‘Junk’ status which has hit SA’s investment potential. At present, only Moody’s has rated SA as somewhat investment worthy (at high risk).
Can A Court Amend Interest By Consent? After the somewhat disastrous Nedbank V Jones ruling, in which a Western Cape court ruled that interest rates in a debt review matter can’t unilaterally be changed but then seemed to go further … read more
Maximum Interest Rates – As Of May 2016 With the failure of MFSA to get the courts to hold off on the implementation of the new changes to the maximum amount of interest that credit providers can charge, the industry … read more
Repo Rate Up Once More This month the Repo Rate went up by another 25 basis points or 0.25% meaning the Repo Rate is now 7%. In March, Reserve Bank Governor Lesetja Kganyago announced that due to pressures on the … read more
Max Interest Rates Chart Want to compare how the draft regulations published for comment look vs the final product? Check out this handy chart below. The new calculation process has been described as easier for consumers to understand. Most effected by … read more
Credit Fees & Rates Regulations Published Dr Rob Davies, the Minister of Trade and Industry has finally published the new limitations of Fees and Interest Rates regulations in the Government Gazette. The Fees limits and new way to work out … read more