The property sector has called on the South African Reserve Bank (SARB) to keep interest rates unchanged when its Monetary Policy Committee (MPC) meets later this week.
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The committee is scheduled to convene on Thursday, 26 March, with its decision expected shortly after 15:00.
Call for stability
Samuel Seeff, chairman of the Seeff Property Group, said recent volatility in oil prices – driven by geopolitical tensions in the Middle East – should be viewed as temporary and not justify a rate hike.
He argued that underlying economic indicators remain supportive of a steady rate environment.
- Inflation dropped to 3% in February, well within the SARB’s target range
- The rand has remained relatively stable below R17 to the US dollar
“There is no fundamental reason for a rate hike and increase in the cost of debt at this stage,” Seeff said.
External pressures mount
Rising oil prices and the prospect of higher fuel costs are expected to add inflationary pressure in the near term.
However, Seeff cautioned against reacting too aggressively to short-term shocks.
He said the central bank should avoid unsettling markets with premature tightening, particularly as South Africans are already grappling with rising electricity and fuel costs.
Weak growth and property slowdown
Seeff also pointed to sluggish economic performance as a key reason to hold rates:
- GDP growth for the final quarter of 2025 came in at 0.4%
- Annual growth for 2025 was 1.1%, below expectations
The property market reflects this momentum, with sales volumes still about 19% lower than levels seen in 2021/22.
Mortgage data from ooba Home Loans shows that while application values have improved slightly, overall volumes remain subdued.
Missed opportunity for cuts
Seeff believes the SARB may have missed an opportunity to cut rates earlier in 2026 when inflation was easing and the currency was stronger.
He argued that slower and smaller rate reductions have failed to provide a meaningful boost to economic growth or the housing market.
Outlook
With economic recovery still fragile, the property sector is urging the central bank to prioritise stability and maintain a supportive policy stance.
Seeff said keeping rates unchanged – and signalling the possibility of future cuts – would help restore confidence, support growth and ease pressure on consumers already facing rising living costs.
Dates for SARB MPC meeting dates in 2026
MonthDateOutcomeJanuary29 JanuaryNo changeMarch26 MarchTBAMay28 MayTBAJuly23 JulyTBASeptember23 SeptemberTBANovember19 NovemberTBAMonthly bond repayment table
The table below shows the current monthly bond repayments on various bond values over a 20-year period assuming no deposit and repayments at prime.
BondRepaymentR750 000R7 362R800 000R7 853R850 000R8 344R900 000R8 835R950 000R9 326R1 000 000R9 816R1 500 000R14 725R2 000 000R19 633R2 500 000R24 541R3 000 000R29 449R3 500 000R34 358R4 000 000R39 266R4 500 000R44 174R5 000 000R49 082Do you have a bond, is your house paid off or do you rent?
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