LESETJA Kganyago, governor of the Reserve Bank, yesterday announced a hike in the repo rate to 6,75%. This means the prime lending rate will now be 10,25%.
The rand strengthened as Kganyago was speaking.
Ahead of the announcement, debt experts warned that a hike in interest rates would be devastating for consumers.
DebtBusters CEO Ian Wason said consumers must find other ways to pay monthly expenses instead of taking out loans.
Debt Rescue CEO Neil Roets warned that the rate increase will translate into higher prices for all commodities, including food.
“There is also a strong likelihood that maize meal may increase by as much as 50%,” said Roets.” – NEWS24
