By Greg Dart

The decision by the Reserve Bank Monetary Policy Committee to cut the repo rate by an expected 25-basis points is to be welcomed. Since September last year, the Monetary Policy Committee has remained cautious, keeping a strong hold on borrowings in light of ongoing geopolitical tensions and economic uncertainty.  This latest move will inject some positivity into the economy.

However, one has to accept that global economic turbulence will continue. Right now, the only certainty is uncertainty and investors in the commercial and industrial markets have already factored in much of the turbulence when considering investments. The reality is that no-one really knows the exact impact of the imposition of tariffs by one of the country’s largest trade partners.

Just as tariffs might lead to increased job losses and fully realise predictions that economic growth will be below the 1% mark this year, these be the so-called last straw that sparks government and even the private sector to re-ignite long overdue industrialisation and growth in manufacturing.

Interest rate cut or no interest rate cut, the ongoing uncertainty is likely to continue to push real estate into a difficult patch. However, this creates opportunities for serious investors to take up opportunities. In effect, this is likely to create a price maker rather than a price taker market which facilitates price discovery and liquidity through auction.

It would be realistic to expect more businesses to resort to business rescue or restructuring. This increases the need to liberate liquidity and the need for us to partner with both businesses and business rescue practitioners to navigate this stressful and challenging process with confidence.

We therefore believe that, in the current climate, the auction platform will continue to be an important lifeline both for companies that are undergoing restructuring and investors who are positioning themselves for future growth.