Interest Rate Hike Dramatically Increased

The announcement today that the interest rate will increase by 75 basis points to 9% comes as a surprise. Although we had our suspicions there would be a hike, this is the highest increase in almost 20 years. 

It is disappointing that the SARB is choosing to raise interest rates as a counter to inflation, when the real reason for the high inflation is the fuel price and not consumers overspending.

This paired with high inflation levels makes it very difficult for the average South African to stay afloat. 

Economic fluctuations are worrying and Government have a responsibility to absorb the adverse effects these elements have on its citizens. 

There is still a lot of value in property investment as it generally stands the test of time in unfavourable conditions. It is best to continue investing in real estate as we are forced to tighten our belts across the board.    

Statement by
Richard Gray
Harcourts SA CEO