Rate Cut Still Expected in April

iAfrica reports that it is unlikely that the Reserve Bank will cut interest rates before the Monetary Policy Committee meeting on 15 and 16 April.

Even though there are still a possibility of an emergency meeting before then, the urgency and utility is much less than in February.

Absa Capital expects the SARB to cut rates by 150 basis points in April, followed by 100 at the June and August meetings. These predictions are mostly in line with market expectations but the possibility of rates bottoming at 6.50% is not out of the question.

Apart from the direct relief these rate cuts will offer — whether you are struggling to repay housing bonds, motor vehicle leases, bank overdrafts or credit card balances — the future are starting to look better. This is according to an article that was published in the latest Pam Golding Properties Intellectual Property Magazine. The article also states that these rate cuts does not signal the end of the downward cycle that started in June 2006, but it certainly makes things easier.

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