5 June 2008
In a letter from Johann Appies the national chairperson of the BCA, to De Rebus, he writes:
"The repo rate is too blunt an instrument to achieve a very specific goal in a very sophisticated economy. Sadly, the people most vulnerable not only to inflation but also the effect of the increase in the repo rate are the poor and previously disadvantaged people in our country.
Our unique history and complex society calls for a more innovative and sophisticated approach in order to soften the blow to consumers especially in respect of assets that do not tend to impact negatively on inflation like immovable property, but provide shelter and a relatively good investment." He feels therefore that a special repo rate used for home loans exclusively would be stable and provide price certainty at least as far as residential property is concerned.
De Rebus website
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