BUSINESS NEWS - Because inflation has remained modest, some analysts believe a 25 basis-point cut in the repo rate could happen at the November meeting.
Others remain more cautious, believing that the SARB might hold rates steady rather than cut, given upward risk to inflation and other external risks.
Property giant, Remax, remains cautiously optimistic about the chances of a further rate cut this year.
“For the sake of our economic growth, I remain hopeful for further rate cuts sooner rather than later. Lowering the repo rate can encourage consumer spending and fuel economic activity – both of which are essential to restoring confidence in the housing market and stimulating broader economic recovery,” says Adrian Goslett, Regional Director and CEO of Remax Southern Africa.
Adding to this, Goslett explains that the recent removal of South Africa from the Financial Action Task Force (FATF) grey list is expected to have a positive impact on future interest rate decisions.
“This could lead to improved investor confidence and a likely increase in foreign capital inflows, which would mean that the rand could stabilise and inflationary pressures ease. This strengthens the case for the South African Reserve Bank to consider cutting interest rates sooner, as the external risks to price stability begin to subside and the focus could shift toward supporting economic growth,” he states.
In the lead-up to the November MPC meeting,Remax Southern Africa highlights three key indicators that should be closely watched.
“The most important will be the upcoming October inflation rate, as any unexpected uptick could weaken the case for a rate cut,” says Goslett.
Secondly, the Reserve Bank will also be monitoring currency movements and global economic trends, since fluctuations in the rand and shifts in global inflation could influence local price pressures.
Lastly, economists are paying attention to how the SARB frames its medium-term inflation target, with talk of potentially moving toward a 3% target. Together, these factors will help shape the tone and direction of the Bank’s next policy decision.
“Whether rates are cut or held steady, what matters most is restoring confidence in our economy. A stable interest rate environment creates predictability – something both buyers and sellers need to make informed decisions. As optimism gradually returns and affordability improves, we expect to see renewed energy in the property market heading into 2026,” Goslett concludes.
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