Three members of the monetary policy committee voted in favour of the 75 basis point hike, while two wanted a 50 basis point increase. On a new home loan of R2 million at the prime rate, the latest increase hikes the monthly instalment by around R1 000. Since November last year, monthly payments on a R2 million home loan are almost R4 500 more expensive due to a raft of rate hikes.On Thursday, Governor of the SA Reserve Bank, Lesetja Kganyago, warned of high inflation and weak economic growth.
The monetary policy committee expects the headline inflation rate to remain above its maximum target rate of 6% until the second quarter of 2023. Headline inflation is only expected to"sustainably revert" to the mid-point of the target range by around the second quarter of 2024. Economists expect that rates will only be lowered when inflation reaches this level.
The Reserve Bank is under pressure to hike rates to cool inflation – but also to protect the rand's value.A deep dive into the big business story of the week, as well as expert analysis of markets and trends.Higher interest rates appeal to foreign investors, who are on the hunt for good returns. South Africa needs foreign inflows of money to keep the rand stable, and local interest rates have been attractive for many years compared to other countries.
However, the sharp hike in interest rates will heap more pain on the embattled South African economy and consumers, who are already struggling with sky-high fuel and food prices and record load shedding. In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
_Business We are not surviving. We don't have the extra money to pay ! South Africa people will be on the streets eventually and our beautiful country be at shame. Do sad.
_Business COSATUSSONLINE SACP1921 SadtuNational..... They give you 3% and they take it back.... South African economic policies are cruel to employees 🤞🏾.
_Business Newdawn is showing us flames petrol, crazy food price, unemployment, interest rates, loadshedding etc. What a time to live in
_Business House prices will be falling. House for sale? Expect to get half its value or even less😪. All the expensive upgrades will be of no value😪
_Business How are we to survive in this country if this keeps on happening!!!!
_Business U all miss Jacob Zumas time.....kunjani manje?
_Business Suck us dry some more
_Business Who owns the reserve bank?
_Business Screwing SA over thanksnto zuma
_Business Good news for us pensioners with paid up houses and some money in the bank...
_Business We are overly screwed..in the meantime that other man goes an make more debt. Whilst him and his brother in law et al, are living like kings.
_Business Hawkish this one
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