So with the US heading into recession, inflation rates locally heading to record levels and the property market hitting a wall which way do you expect rates to go?
Edit: I changed the graph type to a step graph which is more suitable for interest rates.
4 comments:
Nice graph - plenty of upside if you ask me - average of about 17% over that period - looks like a peak at 20% could well be on the cards. That's R 33,000 in interest alone per month on a R2m bond. Ouch.
Considering that from 1989 - 2000 we never had interest rates below 14% I'm wondering why the recent move above 14% is now causing people so much pain. My first guess is that people are much more overextended than before.
Good point - you could say that for 16 years before 2004 the rates were always higher than 14% (except for a few months in 2002 when they briefly dipped to 13%) - Above 14% is very much the norm. The last 5 years have been the exception rather than the rule
I think they seem to inexoribly be going from left to right. I guess that there's no way to stop this.
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