Cape Town, August 2009: The Reserve Bank's announcement today to cut the interest rate by 50 basis points came as a pleasant surprise seeing that
South Africa already saw a cut of 450 basis points since December last year.
That said, it is positive to note that according to TPN Credit Bureau's rental payment monitor,
rentals paid on time and in full in the second quarter improved by 4% - indicating that South African consumers are starting to manage their cash
flow more effectively.
Overall, activity in the property market is expected to pick up as affordability increase, consumers consolidate their debt and continue to
save, while a cut in interest rate puts more cash in the hands of potential homeowners and tenants.