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Whens the Repo rate anouncement?

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platsak
Super Contributor
Any bets. I will bet on 1 %
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23 REPLIES 23
SimonPB
Valued Contributor
12 June at 3pm. It'll be 50 points, there'll be lots of media hype around 100 points etc. But it'll be 50.
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platsak
Super Contributor
I hope you are right Simon. For the sake of my banking shares.
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asylum
Super Contributor
hey platsak still holding those asa shares.
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r_n
Contributor
also hope you right Simon!!
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Not applicable
Hey Simon, didn't you and David Shapiro tell us a year ago on Moneyweb that interest rates had peaked and would go start going down? I'd rather wait and hear it straight from Mboweni's mouth.
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platsak
Super Contributor
Yes Asylum. Its hurting big time.
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Not applicable
I feel your pain Platsak .... I'm also hurting with ASA big time ....hope we have a nice run upwards soon.
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barry_1
Super Contributor
a while ago i guessed 75 points and i'll stick with that!
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Plonky
Super Contributor
Tito was talking about 2 points. My bet is for 1 point
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PaulC
Super Contributor
I think we'll see a full %. I think Tito mentioned 2 to scare the consumers into what might come. From there he gets to evaluate the market reaction and then increase by less. Bottom line its going to go up. Personally I think we should have had the shock 2% about 2 years back!
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platsak
Super Contributor
Anyone feel Banks will bounce of 27500 od support level coming up.
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louisg
Super Contributor
Simon, why are so sure it will be 50 basis points?
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SimonPB
Valued Contributor
because the MPC has only ever done 50 points and 100 serves no purpose. If they are behind the curve 100 points will not get them back to the curve (remembering rates takes months/years to work their way into the system). Also the picture is not really any worse, sure inflation higher, but the plan was to be on hold by now, so +50 accomadates the higher inflation. So 50 in June and another in August.
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hs
Regular Contributor
According to SARB the next increase is going to be 50 basis points.
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Not applicable
I agree with your observation that 1% would not bring them back to the curve. However, 2% might. So whats stopping Tito from following through on the threat?
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SimonPB
Valued Contributor
2% won't help. It'll take ages to work it's way into the economy and when it does we'll be way far behind the other curve (rates down).
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louisg
Super Contributor
I,m sure he is concerned what a 200 basis point increase will do to growth. Am I correct in thinking that all the inflation pressures of the last 12 months must repeat themselves in order for inflation to remain at 10,4% in 12 months time? Surely this is unlikely?
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SimonPB
Valued Contributor
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CHATTYCHAT
Super Contributor
An earlier post regarding the rate increase hype indicated that Tito announced he ran a 200 pt increase through the bank's economic model to check on the results. The media picked this up as a tip. IMIO Tito will not indicate 200 to scare the public off, this is like shouting 'wolf' - nobody will take him seriously next time around. IMIO the time has come for different measures to clamp down on stagflation. There are a few, but this post does not allow for that discussion. Remark: just the other day I received a circular from my bank announcing that the annual review allows for an increase in my Master Card credit limit - I may now dig myself into a R46000 deep grave. (OK, I know there are a lot of you who will be saying 'what is R46000??? mine is R146000, or not?) Point is: is the Credit Act working?
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