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Methinks % rates are going up.....

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el_torro
Regular Contributor
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11 REPLIES 11
bothac_1
Contributor
Me too...when is the next "meeting" when Tito will decide?
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vishal
Regular Contributor
Will all the credit out there ,people spending like there is no 2morrow,we need the hike ASAP to encourage people to stop spending and start saving. MPC should be this month ...me thinks
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el_torro
Regular Contributor
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Not applicable
Gut feel says rates are on the up, but then why are the banks rocketing? very confucius
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barry_1
Super Contributor
unfortunately i also feel that rates may go up as my local property stocks are inching their way down over tha last couple of weeks!
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Brazen
Super Contributor
I think Antsy's right. The banking counters are saying loud and clear 'NO RATES HIKE'. The market always knows. Listen to the market.
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chivas
Contributor
Certain banks have already increased their daily call rates by 0,1%.
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Not applicable
Because of the excess capital that most of SA banks carry on their balance sheets they actually make more money when interest rates go up. It is called the endowment effect. So banks going up may not necessarily be a good indication of where rates are headed. As for my two cents worth, I still believe rates are on hold for the remainder of the year - provided the ZAR can hold below 7.50 which it has every chance of doing if the USD stays under pressure from slumping growth in the US
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Not applicable
Tx dude, didn't know that. Always assumed rates hikes hurt the banks. Also figure you right about rates. Tito is conservative, but not hawkish in approach, an doesn't usually pre-empt the numbers. His war-talk about lending notwithstanding, I figure he's going to hold, based purely on the fundamentals, as you laid out earlier.
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Stock11
Contributor
There are certainly signals supporting the rate hike. Oil prices for starters. But I think judging from the inflation numbers recently published, there is a strong case to keep the rate as it is, at least for now. Hopefully Bush's trigger finger is not itchy!
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SimonPB
Valued Contributor
Banks are hurt in two ways. Firstly increased rates mean more defaulting clients as they can't pay. Secondly increased rates mean less people able to borrow or they have to borow less. But as mentioned above there are also some positives.
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