Interest rate cut surprises, delights South Africans

2012-07-20 00:00

JOHANNESBURG — South Africans were surprised and for the most part delighted by the Reserve Bank’s decision on Thursday to cut its interest rate for banks, known as the repo rate, by 50 basis points.

This was the first reduction in interest rates since November 2010. FNB Home Loans spokesman Ewald Kellerman said households should use the lower rates to strengthen their balance sheets. “This may mean trimming the debt levels and increasing the savings rate.”

The new rate means a homeowner paying a bond of R650 000 will save about R207 per month.

Repayments on a bond of R800 000 will come down by R255 per month.

As for cars, excluding deposits, insurance premiums and balloon payments, a vehicle owner with a R100 000 loan would save about R24 per month.

Cars that cost R200 000 will cost R48 per month less in interest.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.