Interest Rates To Go Up Faster Than Expected
Economists are now predicting that the SA Reserve Bank (SARB) Monetary Policy Committee will bump the Repo Rate by 50 and not 25 basis points this month.
The SARB MPC had previously indicated that consumers should expect a 25 basis points hike as they gradually push the rates up over the next 2 years. However, actions by the US Federal Reserve in pushing up their rates to a 20 year high is likely to be one of the main factors for a bigger than hoped for hike locally.
SA inflation figures (not being helped by the Eskom power problems) have been higher than the MPC have indicated they would like and this may then also push them to jump higher than they had originally planned.
What Does This Mean?
It basically means that people who have credit/debt will soon be paying a bit more towards their interest portion of all their debts.
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