Mboweni Vs. The Banks

Who will it be - Mboweni or the banks?

The current residential property market resembles a crazy court case, with the complainant, SA Reserve Bank governor Tito Mboweni, pleading for a cooling down in the escalation of credit - which includes bonds on homes - to help him contain inflation.

The estate agency industry and those who advance money to borrowers are opposing the motion, which could, if it succeeds, cut their profits.

Average South Africans who can currently afford to borrow money, and who will be affected by the outcome, should be in the gallery, but they're elsewhere, spending money as if it's going out of fashion, seemingly oblivious of the hikes in inflation.

Mboweni is perhaps worried that many of the bond increases granted weren't spent on improving the homes they were borrowed against, but on furniture, holidays and cars, which aren't income producers.