MARKUS MAKES MORTGAGE MAGIC! PRIME RATE DROPS.

What an amazing day and date - the same interest rate as the 20th August 1979 - Gill Marcus you beauty. 

Marcus revealed the following before announcing her decision:

• Domestic inflation has moderated;
• Growth expected to remain low;
• Inflation to average 4.8% in 2012;
• Food prices remain benign;
• Inflation expected to be at 3.7% Q3 2010;
• CPI to average 5.1% in final quarter of 2012;
• Fears of reverse recession have diminished but risks still remain;
• Bank does not target exchange rates;
• Policy rates to remain low in developed economies;
• Rand main downside risk to inflation;
• Inflation moderated more than expected;
• Bond flows show fundamental shift;
• Growth to moderate further in H2;
• Domestic economic growth declined in Q2 in 2010, due to contraction in mining sector; growth in second half to be moderate;
• Consumers still constrained by debt;
• Household consumption may moderate; will be constrained by increased unemployment;
• Banks forecast of GDP growth has declined moderately to 2.8% in 2010;
• Impact of World Cup expenditure unclear at the moment;
• Underlying credit extension remains weak;
• Wage settlements main inflation risk and may affect employment;
• Growth to reach 3.2% in 2011;
• Low interest rate and inflation to support consumer;
• Increase productivity is needed;
• Administered prices place upside pressures on inflation outlook;
• Rand is stronger than anticipated.


So this is what it looks like thanks to Globalfundi our mortgage originators.