The South African Reserve Bank’s decision to hold the interest rate at 10.5% was expected. With inflation at 3.3%, the rand showing strength, and the US Fed cutting rates this week, there was an argument for easing pressure on bondholders and providing a boost to confidence in the broader economy. Instead, the Bank chose to remain cautious: keeping rates high in line with its mandate to anchor inflation closer to 3% and to offset the risks that come with South Africa being seen as a higher-risk investment destination.
This decision matters. Every pause has real consequences for South Africans trying to pay off their homes, for first-time buyers who are calculating affordability, and for a property sector that has been waiting for a clear accelerant to growth. The demand exists. The resilience exists. What’s missing is the momentum that even a 25 basis point cut could have offered.
KwaZulu-Natal’s property market is no stranger to resilience. We have seen steady recovery after floods, economic slowdowns, and years of tight conditions. Buyers are returning, banks are lending, and developers are once again seeing opportunity. Yet, with confidence still fragile, the Reserve Bank’s decision feels cautious at a time when a little more support could have added energy to the recovery.
Property is often about timing. Lower rates accelerate affordability and pull hesitant buyers into the market. They stimulate development, create jobs, and circulate capital into local economies. Holding rates steady may be prudent from a stability point of view, but it also slows down what might have been a quicker recovery phase.
For bondholders, the message is clear: stay disciplined. Keep repayments at current levels where possible. Every rand shaved off the capital today shortens the journey tomorrow. For buyers on the sidelines, affordability has already improved compared to a year ago, and waiting for the perfect rate cut may mean missing the right home in the right location.
I remain confident that cuts will come before long, and that when they do, the property sector will be ready to pick up the pace. For now, we acknowledge that the latest decision was one of caution, even as many in the market were hoping for a signal of momentum.
The South African property market is resilient. KwaZulu-Natal is resilient. But resilience thrives best when matched by leadership that balances stability with growth.
