Interest rate cut in SA

Residential real estate owners of property in South Africa welcomed last week’s announcement from the Reserve Bank as they trimmed 0.5 per cent from the prime interest rate to 8.5 per cent – the lowest level for four decades. Property experts cheered the decision announced by Reserve Bank Governor Gill Marcus as a step towards helping property owners face the tough economic challenges that lay ahead although savers, already receiving a low interest rate will need to curb their spending habits. Members of the South Africa real estate industry believe the 0.5 per cent interest rate cut will be a positive move on the road to recovery and may entice potential buyers currently undecided about their next move to take another look at the selection of properties for sale in South Africa. Many experts were taken by surprise by the Banks decision but believe it will instil greater confidence among consumers.