While economists were largely unanimous on the possibility of a hike ahead of the announcement, the decision to hike the repo rate by 25 basis points to 4% is still disappointing says Dr Andrew Golding, chief executive of the Pam Golding Property group.
“However, with the December consumer inflation rate close to the upper limit of the Reserve Bank’s inflation target and with local risks to the inflation outlook firmly on the upside – the MPC was likely to take this decision to increase rates now.” The decision by the SARB to increase rates was entirely expected and is unlikely to affect the momentum in the property market, added Samuel Seeff, chairman of the Seeff Property Group.
Nonetheless, he adds that even with the hikes, the rate remains at the lowest levels in decades and will continue serving as an inducement to buyers.