“This was a fantastic opportunity for the Reserve Bank to make a definitive move in the face of declining inflation and a slowing economy to cut interest rates by at least 50 basis points. The uncertainty caused by possible further ratings downgrades and our weakened currency have prevented this. The causes of these factors have nothing to do with global markets but rather the severe political challenges we face in South Africa at the moment. This is a lost opportunity and as a result, the economy and the people of South Africa will continue to suffer for reasons that are our doing, and ours alone! Aside from the positive financial impact of a rate cut on home ownership and affordability, the impact of heightened consumer confidence would have had an equally positive impact on the residential property market. If consumers feel more confident, they will make longer term spending decisions, of which buying a home is one of the biggest”.
Herschel Jawitz, CEO of Jawitz Properties.