Reserve Bank hikes repo rate on rising inflationary risks driven by oil prices
Indebted South African consumers, whose spending is a key driver of economic growth, will have to tighten their belts after the Reserve Bank raised interest rates, citing intensified inflation risks stemming from higher oil prices linked to the Middle East war.
Concerns over household debt
The Institute for Economic Justice argued that the economy, which grew only 1.1% in 2025, is too weak to absorb tighter monetary policy.
The rate hike will intensify financial pressure on already struggling households, according to Neil Roets, CEO of Debt Rescue.