Home Loan News: interest rates
The South Africa Reserve Bank‘s monetary policy committee completed their first meeting of the year 2010, with an announcement from the new governor that interest rates will remain unchanged.
The prime interest rate will remain at 10.5%; despite many calls for a cut in the lending rates.
The Reserve Bank Governor, Gill Marcus, revealed on tuesday that the decision to keep the prime interest rate at 10.5% was not unanimous among the committee members, with many calling for at least a 0.5% rate cut.
She added that no discussion was made about increasing rates, raising hopes that we could see a rate cut later this year.
This is even more evidence that interest rates are close to the bottom of their cycle, which has made home-ownership much more affordable in recent times. And, with property prices already increasing, the sooner you get into the market the faster your investment will grow.
With rates remaining unchanged, you may not see any extra money in your pocket every month if you already have a bond. But, you can change that by applying for a better interest rate on your bond that will lower your monthly repayments.
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