“Today’s decision to retain the repo rate is very disappointing for the economy and property market” says Samuel Seeff, chairman of the Seeff Property Group.
“We enter the year on a more positive note and with the improvements in the currency and the stability of the CPI rate within the SARB target range, the time is right for a rate cut to stimulate the economy and the property market“.
Seeff went on to say that the much awaited appointment of Cyril Ramaphosa as President of the ANCE and President in waiting of South Africa, has boosted consumer and business confidence and it is sending a positive message to the market.
The JSE performed above expectation following the announcement of an Inquiry into State Capture and this also led to an improvement in our currency, the petrol price to drop and the interest rate to drop which all bode well for the year ahead.
According to recent media reports, economists are also expecting an improved economy, boosted by higher commodity prices and stronger global demand and rebounds in agriculture, mining and manufacturing. Finance Minister, Malusi Gigaba also recently hinted that economic growth of 2% is achievable if government takes needed policy decisions including fiscal consolidations and taking action insofar as SOEs such as Eskom and SAA are concerned..
It therefore follows that a rate cut would have provided an added boost for the economy and market.
“The economic challenges notwithstanding, there will always be activity in the market as people need to buy and sell for a variety of reasons. The first few months of the year is usually more active and we would urge those looking to sell or buy to go ahead and do so. There is no need to wait, business continues“.
“As the market stands right now, conditions are favourable for buyers and it is a good time to buy“, concluded Seeff.