Indawo Peter Jäck Repo Rate announcement May 2016
Peter Jäck and Indawo quoted in Weekend Argus 28 May 2016 on rep rate remaining unchanged.
Indawo Peter Jäck Repo Rate announcement May 2016. The announcement on 17 May 2016 by the SA Reserve Bank to keep interest rates static was met with relief from Indawo. Interest rates have a direct impact on the sustainability of employment in the construction sector. Any increase impacts on the employment levels of staff, sub-contractors and suppliers.
Indawo Peter Jäck Repo Rate announcement May 2016
The decision by the SA Reserve Bank to keep the repo rate unchanged has been met with relief from industry experts.
Keeping the repo rate at its current levels has a positive impact on the remedial construction industry and, for the meantime, employment levels can also remain on an even trend. Indawo expressed relief at the announcement that the interest rate would remain at 10,5%. This means the citizens of South Africa will have some relief in light of the forthcoming fuel price hike.
Here is the full press release:
Press release
Rate remains unchanged to the relief of remedial construction industry
SA Reserve Bank (Sarb) governor Lesetja Kganyago’s announcement, on Thursday, 19 May 2016, indicated that the construction industry remains resilient with a slight upward push in infrastructure development, especially with a quarterly increase in the value of building plans passed, with a noted increase in the non-residential market.
Painting, waterproofing and construction company Indawo’s chairman, Peter Jäck, has expressed relief at the announcement that the repo rate will remain unchanged at 7% and the prime lending rate at 10,5%. “With the rand taking a beating recently on the back of global growth concerns,” he says, “and local anxieties of a downgrade in the South African risk status on top of unprecedented political tension, it is not surprising that low business confidence in the construction industry dominates daily discussions. The remedial construction industry, despite this, remains remarkably resilient as building owners understand the need to invest in maintenance.”
Home and building owners alike, will be relieved at the announcement that they will not be forking out additional bond repayments, or be feeling the pressure of increases in prices for construction projects. The pause in an announcement of an increase in the interest rate will provide further relief to building owners wishing to conduct maintenance.
Jäck concludes, “While the remedial construction industry continues to be a key provider of employment, interest rates play a major role in costing models. Any increase has vast implications that impact sustainable job creation. The announcement to keep the rate at 7% is a positive indication that the South African Reserve Bank is committed to protecting our economy.”
Indawo can be contacted on 021 941 5000 or email info@indawo.biz.
Ends
270 words
Look what we have achieved and done in Cape Town and see Indawo in the media!
Construction industry braces for 2024 challenges
Indawo is in the media again! Our Managing Director looks to what challenges 2024 will bring. Geoffrey Jäck, the managing director of asbestos, roofing, and remedial construction contractor Indawo, says that the company has remained resilient and vigilant in the face...
High interest rates threaten property maintenance programmes programmes
Indawo is in the news again. This time our managing director gives insight into the impact of high interest rates in the industry. The SA Reserve Bank’s Monetary Policy Committee’s (MPC) increased the repo rate by 50 basis points to 8,25% - raising the prime lending...
INDAWO IN THE NEWS
INDAWO IN THE NEWS Interest rate hike affects construction According to leading property maintenance and asbestos contractor, Indawo’s managing director, Geoffrey Jäck, property maintenance is a critical part of property ownership. Lack of maintenance is a major cause...
Indawo in the news again, all about asbestos
Type 3 approved Registered Asbestos Contractor Only use an approved registered asbestos contractor for asbestos removal. The law states that only RACs are permitted to handle large scale asbestos removal. This means more than 10 square metres. Indawo is a registered...