Prime lending rate remains the same
After the conclusion of today's Monetary Policy Committee meeting, Reserve Bank Governor Gill Marcus announced that the prime lending rate would remain at 9%. The interest rate has stayed steady since November last year.
'It is widely expected that the interest rate should stabilise within the 9% - 10% range as long as inflation does not exceed the current ceiling of 6%', says Adrian Gosslet, CEO of RE/MAX of Southern Africa. 'This means that South Africans can continue to enjoy a prime interest rate figure that was last seen in February 1974.'
'Although the property market's recovery is still slow, we have experienced a higher rate of activity, indicating that a positive sentiment has returned to the market during the first quarter of 2011. It is even more encouraging that demand for property continues to rise despite an overall higher cost of living taking into account the recent petrol price hikes, which will have put further strain on consumers who already have a relatively high debt-to-income ratio.'
'While a full recovery may take some time, there are signs that the property market is gaining momentum and that sales figures will continue to improve.'
RE/MAX Press Release