Should we shouldn't we?

By Staff Writer
Should we shouldn't we?

The analysts are out on what to do with the interest rate

Compare banks, Get quotes and Save with Justmoney.co.za, South Africa's online guide to money.

In today's news round up The Times is reporting a face-off over interest rate hikes.

The next meeting of the Monetary Policy Committee (MPC) which is the statutory body charged with deciding the interest rate will be meeting again in December.


Some economist's believe that we should be starting to look at cutting the interest rate while others including the International Monetary Fund (IMF) reckon on us having to hold or even to raise interest rates.


Those in favour of a cut point to the extra pressure a raise would place on already suffering consumers, and the fact that it is not a sure thing that raising rates would lead to forex inflows.


Other commentators in favour of a cut pointed to the volatility of the rand and how this was hectic enough to prompt a policy response.


The IMF which is in favour of raising rates points to the gap between our imports and our exports (the current account deficit) our underperforming growth levels and masses of consumer debt.


The economists won't know what the MPC is really thinking until after it has been thunk and the decision is read out, but the general fingers crossed seems to be for a rate cut.


In other news from The Times a report on the Sanlam Investor Management Confidence Index came to the conclusion that the base cause of all the current financial problems lay with the massive loss of investor confidence that has taken place.


The banks are offering much more positive interest rates in a bid to get people to save, click here to compare our top savings accounts.


And on a final note from The Times if you are a tomato lover hold on to your pasta as tomato prices, especially in Gauteng have recently soared.
So if you are worried about your budget, click here to use our planning tool.


Business Day also went with the should we shouldn't we on interest rates.
Comment here acknowledged the current account problems where if our currency depreciates further our imports will get even more expensive and widen that gap extra.


However if the Rand does not start to recover fairly soon then a rate rise may be on the cards in December to prevent an vicious inflationary circle.
Business Day also explains it to those who want to live in fear of their bank collapsing.


Who knows maybe they enjoy it, but our banks are liquid and lending to each other which is not the case in countries you should be scared in.
The World Bank weighed in its opinion that SA banks' balance sheets are likely to remain healthy.


Click and compare bank accounts right here with Justmoney.co.za, South Africa's online guide to money.

Well the hike the rates or not story continues to dominate the headline with Business Report coming down on the not convinced about hikes side, although they did caution that interest rate cuts might be delayed due to the international meltdown, and slowing consumer demand which would help to close the current account deficit.


There were also calls for the Reserve Bank to support bond paying consumers with market intervention.


The Dispatch today reported on a 4.6% increase in the value of civil debt judgements in the 3 months to August compared to the same time last year, with an increase of 0.9% in civil debt summonses.


Click here to contact a debt counsellor.


The Dispatch also reported that Wesbank financed vehicle repossessions had increased a massive 93% between July and September compared to the same period last year. This puts total repossessions in the region of six to seven thousand a month, with the other lenders also reporting increases although none as large as Wesbank's.


There was however an effect of the National Credit Act (NCA) that has lead cars to being paid off over a longer period, thus allowing everyone involved a little bit more for a little bit less pressure.


There was also a report on New Clicks earnings jumping, click here to compare credit cards.


Fin24 picked up the car repossession story with a 'Cars worth R560m repossessed' headline.


And finally from Fin24 they went with a story about a lecture delivered by Tito Mboweni spelling out three policies that must have cognisance taken of them.


These are that the policy of targeting inflation should be left alone, a weak rand is not a good idea and that a widening deficit would not be helpful.


He put down those who have been calling for exactly the opposite of his proposal as 'not knowing what they are saying', and a final cracker from the Guv

"He said if SA had not had such sound policies, then people would be "packing for Perth". "And when they arrived they would pack for Johannesburg!""

Click here to get travel insurance.

Recent Articles

Featured Debt consolidation – Explained

Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.  

Read more

3 Vehicle financing options compared – which is cheaper?

Buying a car is a considered a milestone, both in life and financially. Unless you’re able to fork out the cash, many opt for financing. But often the excitement to drive it off the showroom floor overshadows the need to check if you’re choosing the most-suited option. To help you make the best-informed decision we compare available vehicle financing structures in South Africa.

Read more

Splitwise: Split the bill not the friendship

Collecting your friends’ debt to you can be draining. You don’t want to ruin your friendship with them, and it can also be extremely awkward. I don’t know how many times I have written, deleted, and rephrased texts, reminding people to pay what is due to me.

Read more

Stokvel-friendly accounts – which one is fair?

The stokvel economy is approximately worth R49 billion in South Africa. This is according to the National Stokvel Association of South Africa (Nasasa). Altogether 24% of these stokvels are in Gauteng, while only 6% are in the Western Cape.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Cape Town Fish Market Swartland Special

Price: From R123
When: Until 14 July
Where: Cape Town

Aha Casa do Sol Pay 2 Stay 3 Special

Price: R1,200
When: Until 31 July
Where: Mpumalanga

Open University Free Courses

Price: Free
When: Daily
Where: Online