The news most of South Africa had been waiting to hear today; Interest rates will not be changing, this after the Reserve Bank decided to keep the repo rate at 12%. Most of us were waiting with baited breath this afternoon, fearing that interest rates will be increased again. An increase in interest rates would have plunged the majority of South Africans into even more debt. Can you imagine having to pay a couple Rand extras every month on your mortgage or car? But now, we will not have to pay extras due to the interest rates remaining where they are. What I can hope for now is that instead of waiting for the next MPC meeting and waiting to find out if rates are going to go up or remain where they are, we can be in a position of hearing the possibility of interest rates going down. I may be dreaming about the possibility of interest rates going down anytime soon but we are all allowed to dream aren’t we?
Some analysts are predicting that interest may only start to come down in the middle of 2010 so for now we just have to hope that they remain where they are as opposed to rising. There is also the possibility that the price of fuel could be coming down next month which is cause for celebration.