Repo Rate has increased by 25 basis points

The Monetary Policy Committee has increased the repo rate for the second time in two months. The current sentiment is that rates will continue to rise slowly throughout the year. The repo rate is now at 4% which is still 2.25% lower than prior to the start of the COVID-19 pandemic.

A gradual rise in the repo rate was expected with inflation increasing, the MPC aims to cement the future trajectory of the interest rates by gradually rising the rates now.

Mike Greeff, our CEO had this to say about the MPC decision:

"The increase will affect certain areas of the Western Cape, those looking to purchase their first property, being the most affected. I expect to see very little change from the middle and upper tier of the market in the short-term, with continued high volume of transactions as the interest rate is still at near record low levels. 

The Western Cape property market continues to do well as the semigration trend from 2021 continues into 2022. International buyers are still investing in properties in the Cape. Overall, there is strong demand for property in our areas of operation."