September 21 2026 18:00
CAPE TOWN, SOUTH AFRICA
Samuel Seeff, chairman of the Seeff Property Group, has issued a call to the Reserve Bank to hold the repo rate unchanged in the interest of overall economic stability at this week’s Monetary Policy Committee meeting.
The recent monetary policy tightening by global central banks, including the US Federal Reserve and the European Central Bank, may prompt the Reserve Bank to follow suit with a hike, said Seeff. Many market analysts now also view the elevated global oil price and a higher domestic inflation rate as risks, projecting a possible 25-basis point rate increase.
Seeff, however, said stability is now vital for the economy and property market and called on the Bank to step in and support the domestic economy, drawing a parallel to the critical interventions made during the pandemic. He maintains that the current oil price pressures and inflation spike remain temporary global supply-side factors, even though they are taking slightly longer to subside than originally anticipated.
Increasing interest rates under these circumstances would fail to address external cost pressures while placing unnecessary financial strain on already constrained consumers and property owners. A further rate increase following the 25-basis point hike implemented in May could severely hamper the country’s economic recovery at a critical time, according to Seeff.
The national economic growth outlook has already been adjusted downward from an initial projection of 1.4% at the start of the year to approximately 1.1%. That is a significant downgrade. Introducing further pressure due to higher borrowing costs risks further depressing consumer spending and the economy, including property market activity.
The economy and property market require a stable interest rate environment to maintain confidence and activity. Household budgets are currently balancing higher living costs, and an additional interest rate increase will strain bond repayments, increase home loan default risks, and impact the ability of first-time homebuyers to enter the market.
Seeff said monetary policy must look past short-term cost shocks and prioritise long-term economic protection. Holding the repo rate at current levels will provide much-needed certainty for businesses and property investors, helping to safeguard existing jobs and foster sustainable long-term economic growth.
247@propertyflash.co.za
