Unchanged repo rate disappointing

WITH the February 2025 consumer inflation rate unchanged at 5.32% — below market expectations — Pam Golding Property’s decision not to reduce the repo rate was disappointing for existing mortgage holders and aspiring home buyers.

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This means that the SA Reserve Bank repo rate remains 7.5%, while the prime lending rate stayed at 11.0%. While economists were divided ahead of the MPC decision, some argued that given the lagging state of the local economy, real (inflation-adjusted) interest rates are too high, suggesting further rate cuts later in the year — if inflation remains contained, and as long as inflation remains contained.

Meanwhile, a large petrol price cut is anticipated in April, currently estimated at around R1.20c per litre, which could further help to dampen inflation.