The South African Reserve Bank (SARB) has definitely missed at least two vital opportunities to cut the interest rate, says Samuel Seeff, the chairman of the Seeff Property Group.
He told “Independent Media Property” that the lacklustre economy and the property market need an injection of energy, and no doubt it needs a rate cut, while the Bank has been too overly cautious.
“This is not a time for a ‘wait and see’ approach; it’s time for bold action, and a cut of at least 25bps.
“The SARB stance has been particularly disappointing given that the data has been very favourable for lower rates throughout this year, with inflation below or near the bottom of the target range, and the ZAR relatively stable, notably trading below R18, even after Trump’s latest tariff comments,” Seeff said.
While global markets are dealing with the economic uncertainty triggered by US tariff hikes, South Africa’s residential property sector continues to show encouraging signs of resilience.
BetterBond’s data for July shows that bond applications have risen by 7.4% for the 12 months to May 2025, with home loans granted up by an impressive 13.6%, says Bradd Bendall, BetterBond’s National Head of Sales. He said this points to renewed buyer confidence and a more stable market environment.
“Driving this upward trend is the recent easing of interest rates. With inflation recently comfortably within the 3 to 6 percent target range, we expect the South African Reserve Bank to announce another 25 basis point rate cut when the Monetary Policy Committee meets next week,” Bendall said.
He said this would drop the prime lending rate to 10.5%- a level last seen in November 2022. “Although not quite at pre-pandemic levels, this cut would bring welcome relief to homeowners and consumers. On a R2 million bond, for example, the lower prime lending rate would mean a saving of just over R300 a month.”
BetterBond said this potential cut aligns with global monetary policy trends. This was because both the Bank of England and the Reserve Bank of India are expected to reduce rates in August, suggesting a broader shift toward interest rate easing to stimulate economic activity.
The US Federal Reserve is also expected to lower rates when it meets on 30 July, and the South African Reserve Bank is likely to follow suit the following day at its rate announcement, the bond originator said.
Seeff said its take is that the Reserve Bank needs to be bold and act in the interest of the South African economy.
“The MPC needs to focus on what the SA economy needs, a bold rate cut which can serve as a rocket to push the economy and try and grow the GDP, a critical necessity given the unemployment rate and what is best for everyone in South Africa.”
The next SARB’s Monetary Policy Committee will announce the July interest rates decision next week.
Independent Media Property
