Thursday, August 12

Woohoo!

Interests Rates reduced by 50 basis points! Calling that unexpected would be a mild understatement, but I can certainly use the extra money in my pocket.

2 Comments:

Anonymous Anonymous said...

Richard, sure you're richer - but only until the weaker erand comes through into the higher petrol price.

zaBlogger

12 August 2004 at 17:56  
Blogger Richard said...

I dont agree. I drive about 500 kilometers a week, which works out to about a tank of gas, or R200. If the petrol price goes up 10% that is only R80 a month extra on gass, while im saving a lot more than that on bond repayments.

The fact is also that gas prices are at historic highs. This means that I'd lay good money down that the price of petrol will be dropping soon.

Also I dont believe that there is such a strong connection between interest rates and the rand anymore, and I dont think the Reserve Bank does either. I see this as a purely political move to take some of the wind out of Cosato's and the Mining sectors sails.

Should be interesting to see how it developes.

13 August 2004 at 10:03  

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