The Monetary Policy Committee of the Reserve Bank is meeting this week and will be releasing their interest rate decision to the public at Three pm on Thursday 30th April 2009. There is an expectation that the MPC will cut rates and there has been some speculation that it will be by a significant amount. So what can you do to take advantage of a lower interest rate?
- Remortgage your home at a lower rate
- Compare your credit cards
- Review your bank savings accounts
All of these methods can be used to take advantage of a lower interest rate and help you keep your personal finance in a better position. The expected rate cuts have been looked at by Business Report who noted that the interest rate decision will depend on a number of factors and that it would be heavily influenced by inflation data that Statistics South Africa would be releasing this week. Other data that will influence the decision comes from Reserve Bank data on credit extension while SARS is to release trade data. All of these will have an effect on the decision to cut the interest rates or not. While we may be in for some surprises the general view is that the rates will be cut.
Fin24 also looked at the rate cut possibility and reported that the MPC could surprise us with a 1.5 or even 2 percentage point cut. The article also looked at the various data to come that will influence the decision. They noted that a 'bigger cut may be justified by the faster rate of economic deterioration', and that 'it is hoped that faster rate cuts could help confidence and production to rebound quicker'. So stay on top of your finance and if there is a rate cut make sure you are positioned to take full advantage of it.
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