Interest Rates today?

[#1]

So, what's your opinion re the interest rates announcement that we expect at 15h00 today? 50 bp down? And what do you think is the market's expectation?

[SimonPB]

no change ..

[richardw]

No change.

[#4]

No change, besides Unions have been too greedy with wages, and the poorest of the poor (who the unions are supposedly fighting for, yae right will leave my opiions at the door on this one) don't own mortgages, credit cards, overdrafts and leveraged debt. so what difference does 50bsp or even 200 points do for them?

[SimonPB]

well the hteory is that lower rates encourages/enables growth and this benefits the poor in jobs etc..

[Hibiscus]

and lower interest rates should bring the price of bread down

[#7]

-50 Bp, the analysts say.

[Preston]

Unchanged

[#9]

Simon, I agree with the theory part, but the pratice part? Right now companies/individuals are sitting with mounting debt (and again in theory lower rate should help them pay off faster). So if a rate cut happens then companies use it to re-adjust(re-leverage) debt levels to recoup the margins they are loosing and boost earnings with less staff. Ultimately in the long run it should, in theory, help but does SA not have a greater attraction to foreign investment when our rates are higher and foreign investment can benefit from investing here? Emerging markets are after all the riskier but higher growing markets especially in the commodities sector most of SA relies on. Read a very very interesting article on the state of affairs for the next while and explains quite well why stocks/bonds etc are on the rise: see here http://www.moneyweb.co.za/mw/view/mw/en/page292690?oid=309422&sn=2009%20Detail

[AJT]

General concensus is unchanged, therefore I reckon -50 bp

[SimonPB]

the only attraction to high rates for foreigners is the carry trade and that's hot money so no real benefit to the economy ..

[#12]

As usual your wisdom shows us mere mortals better ways of thinking. Thanks for the insight. I did not think along those lines and I suppose the economy is what needs the boost.

[Mr_Money]

-50 basis. Zuma owes the unions who want a decrease on the rate

[SimonPB]

zuma owing the unions is so last year .. an completely contry to reality on the ground ..

[#15]

Zuma needs to stop the striking thus he will be forced to give the workers something.In my opinion I feel we could get a 50bps or 1% drop,but the inflation targetting of the SARB could come into play and no drop.I could do with the drop tho,every cent counts.

[SimonPB]

here's another top tip .. zuma has nothing to do with the MPC (beyond appointing the reserve bank gov) ..

[#17]

If I hire you Simon.I am your boss,no??;)

[Prestonmyhusban]

here's another top tip ,Tito do not give a damn. He has no reason to satifying the unions. No decrease in interest rate.

[SimonPB]

he's not hired .. appointed large difference - he can only end the term early in extreme circumstances .. check the constitution .. an check Tito's record over the last decade .. an tito is leaving, so he cares nada .. marcus cares even less, she's tougher then zuma could ever wish to be ..

[#20]

Well whats the verdict??