Property Barometer – Weekly Comment – To Fix Interest Rates or Not To Fix Interest Rates?

In the last week of this month, the Reserve Bank’s (SARB) Monetary Policy Committee (MPC) once again meets to deliberate on interest rates. The outcome will be announced on 28 November, and it is expected that it will raise its policy Repo Rate by 25 basis points to 6.5% , in turn leading to a Prime Rate increase to 10%.

Consumer Price Inflation to date has been benign, at 4.8% yearon-year for November, but drought-driven food price inflation pressures along with a sharply weaker rand lifting imported inflation pressures has raised concern of a near term rise in the overall CPI inflation rate.

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