Good News! For the moment your bond repayments are stable.
The South African Reserve Bank is set to keep rates unchanged until at least the second quarter of 2014, this is according to a Reuters Poll. After the second quarter the central bank could be expected to begin a tightening cycle.
The repo rate is at a 40-year low and was last changed in July 2012 by reduction of 50 basis points.
A Reuters poll conducted of 50 economists, stated that the SARB will continue this policy until the second quarter in 2014 on its fifth policy meeting of the year.
The SARB is currently facing a policy dilemma with poor growth, while inflation is above target.
Even with the local currency taking a beating against the dollar at a current rate of +-R10.51 to the dollar, analysts predict that inflation will rise above 6% next year and that this figure will remain above 6% for a while.
What this in short means for consumers, is that over the next 5 months your bond and credit card repayments will remain as they are. It would even be advisable to dump extra cash into credit cards and bonds to reduce interest on these accounts.
It may not seem like a saving, but in the long term this could save you money and/or even your property if your bond is currently stretched to the limit.
The current bond rates can not be held indefinitely and by the time rates do increase, you have built up a nice reserve and improved your credit rating.
The SARB has a function to stave off crippling inflation, and to beat inflation would be for consumers to pay more on interest. Exports benefit from the current exchange rates.
Now is advisably the best time, taking into account the countries fiscal forecast, to invest in property, put up the maximum affordable deposit and save.
Contact Myroof.co.za today for bond assistance and property advice. We also have a huge selection of properties available.