Interest rate could rise by 2% !!!!
Reserve Bank governor Tito Mboweni, in his speech at the Gordon Institute of Business, said: “200 basis points is possible”.
The reason he is thinking of raising the interest rate that much is to try and curb inflation. If he does this it will most certainly hurt a lot of property owners.
I don’t know if this is the correct action to take seeing that inflation at the moment is being driven by the high oil price, and we don’t really have control over that, unless we all start walking to work.
The upside for property buyers will be a sharp drop in property prices as people try to sell their unfordable properties. Property owners need to go to the banks and renegotiate their interest rate, if you are a good payer there is no reason why the bank shouldn’t be more lenient towards you.
So, let’s see what happens next month, but be ready for a shocker.
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