The Monetary Policy Committee’s (MPC) decision to keep interest rates unchanged with a repo rate at 6.75% and the prime lending rate at 10.25% comes as little surprise against the backdrop of global uncertainty.
Headline consumer inflation cooled to 3.0% in February from 3.5% in January, with the monthly Consumer Price Index (CPI) increase measured at just 0.4%, suggesting price pressures are moderating for now.
“While a hold on interest rates offers some welcomed breathing room for consumers, the broader economic environment remains uncertain,” says Adrian Goslett, CEO and Regional Director of REMAX Southern Africa.
“Global tensions, particularly those impacting oil supply, are likely to influence fuel and food prices locally, which could place upward pressure on inflation later in the year,” he explains.
Despite interest rates remaining unchanged, Goslett explains that the property market continues to operate with caution. Buyers and sellers alike are navigating mixed signals, balancing improved affordability against concerns of future rate movements.
On the positive side, interest rates have eased back to levels comparable to the pre-COVID period (6.5% in October 2019). “Thankfully, we are well below the peak of 8.25% seen in 2023,” Goslett notes.
“While stability in rates is the best we can hope for now, that confidence will depend on clearer economic direction. For now, the unchanged rate supports transactional activity, but strained momentum will require greater certainty around inflation and future rate decisions,” concludes Goslett.
For more real estate advice or to get in touch with your nearest REMAX Office, visit www.remax.co.za
