Property Experts Urge SARB to Slash Interest Rates by 50bps to Boost Economy

As the South African Reserve Bank (SARB) prepares to announce its interest rate decision this Thursday, property experts are urging a bold move: a 50 basis points (bps) cut to stimulate the economy and revive the property market. Samuel Seeff, Chairperson of the Seeff Property Group, is leading the charge, arguing that current rates are too high and out of sync with declining inflation and stable economic conditions.

Inflation Within Target Range

Seeff points to the significant drop in inflation, which reached 3.2% in January 2025—well within the SARB’s target range of 3% to 6%. This marks a dramatic decline from the 6% average in 2023 and the 4.4% average for 2024, according to Stats SA. “Inflation has reduced dramatically, and this provides a strong case for a bold rate cut,” he said.

He also highlighted the decline in oil prices, which have fallen to around $70 per barrel—lower than last year and below expectations. “This will either drive inflation down further or help keep it contained, adding more incentive for the Bank to implement a bold rate cut,” Seeff explained.

Rand Stability and Economic Growth

Despite recent political tensions, including the Trump administration’s expulsion of South Africa’s ambassador, Ebrahim Rasool, the rand has remained relatively stable. “After weakening slightly, the rand actually strengthened over the weekend following the news,” Seeff noted. This stability, combined with lower oil prices, creates a favourable environment for a rate cut.

Seeff also emphasised that the current prime interest rate of 11% is too high, sitting 100bps above the pre-Covid-19 level of 10% in January 2020. “The gap between inflation and the interest rate is still too wide. Lowering the interest rate would stimulate activity in the property market and, more importantly, serve as a crucial incentive to boost economic growth and job creation,” he said.

Property Market Momentum

Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, echoed Seeff’s sentiments, expressing hope for a further cut of around 25bps. “We are still below the midpoint target range for inflation, which makes this a good time to further stimulate the economy with another interest rate cut,” Goslett said.

He added that the impact of previous rate cuts is only now beginning to reflect in the property market. “A further cut would help keep the momentum going and bolster activity within the real estate sector,” Goslett explained.

The Case for a Bold Move

Seeff argued that a 50bps cut is necessary to align interest rates with current economic realities. “The prime interest rate at 11% is still a full 100bps higher than the pre-Covid rate of 10% in January 2020, which was later reduced to 9.75% and eventually to 7%. By comparison, inflation is now down to 3.2%, whereas it was around 4.5% in January 2020,” he said.

Despite a slight 0.2% increase in inflation since December, Goslett remains optimistic. “We are still below the midpoint target range for inflation, which makes this a good time to further stimulate the economy with another interest rate cut,” he said.

As the SARB prepares to make its interest rate decision, property experts are united in their call for a significant cut to boost the economy and revive the property market. With inflation within the target range, stable oil prices, and a resilient rand, the conditions are ripe for a bold move. A 50bps cut could provide the stimulus needed to drive economic growth, create jobs, and reinvigorate the real estate sector. All eyes are now on the SARB to see if it will heed these calls and take decisive action.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com