According to Bloomberg, the US Federal Reserve may also raise interest rates by 75 basis points toward the end of July as officials turn to more aggressive measures to battle inflation. This scenario comes after the annualised US inflation rate was announced to have accelerated to 9.1% in June.
In general, SA property professionals were not surprised by the MPC’s decision to increase the repo rate. However, some had hopes of a more minor increase.
Realistically, the lows that we had mid-pandemic were never going to be sustainable in the long term. Unfortunately, factors like international conflict, increasing global economic pressures and our own ongoing energy crisis have forced that slow and steady rise to take a steeper trajectory than we had hoped for.