n Personal Finance Newsletter - Fixed deposits : time to get out? : investment insight
|Article Title||Fixed deposits : time to get out? : investment insight|
|© Publisher:||Moneyweb (Pty) Ltd|
|Journal||Personal Finance Newsletter|
|Publication Date||Jul 2009|
The recent decision by the South African Reserve Bank's monetary policy committee to cut interest rates by a further 100 basis points brings the repo rate to 7.5% and prime to 11%. And with consumer inflation sitting at 8.4% (but expected to go lower in the coming months), investors in three month interest rate instruments will likely earn a 0% real return. In other words, putting your money into a three-month fixed deposit will see your money grow by about the same rate as inflation.
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