JOHANNESBURG - Seeff Property Group has warned the South African Reserve Bank against an interest rate hike ahead of this week’s MPC meeting.
The group warns that a hike now could undermine the country's fragile economic recovery.
The property group says global market volatility driven by oil prices linked to the Middle East War has pushed expectations for near‑term rate cuts off the table.
Forward‑rate agreements are now pricing in a possible 25‑basis‑point increase by year‑end.
Seeff argues the oil‑price shock is temporary and does not justify tighter monetary policy.
It points to a stable rand below R17 to the dollar and inflation easing to 3 percent in February.
The group says the Reserve Bank missed an opportunity to cut rates earlier this year.
It says this contributed to weak growth with GDP expanding just 1,1 percent in 2025.
Seeff adds that the property market remains under pressure and warns that higher rates would further strain consumers already facing rising electricity and fuel costs.