Interest rate decision will not change property market meaningfully
JOHANNESBURG – This week’s SARB interest rate decision not expected to change property market conditions meaningfully, according to
John Loos, Property Sector Strategist at FNB Commercial Property Finance.
John Loos, Property Sector Strategist at FNB Commercial Property Finance.
Loos saidm “In the currently low CPI (Consumer Price Index) inflation environment, Firstrand expects the Reserve Bank (SARB) to cut interest rates by 25 basis points at its Monetary Policy Committee (MPC) meeting this week, which would lower the policy Repo Rate to 6.25% and Prime Lending Rate to 9.75%. Should this cut take place, however, we believe it unlikely that it will materially change the “gradually correcting” trend in the commercial property market.”
Loos said that they believe that current property market-related sentiment is driven less by interest rate moves and prospects at present and more by economic performance and perceived future economic growth and stability prospects.
Source: iol.co.za
