Neil Roets, CEO of Debt Rescue, said rising interest rates will also hurt
businesses, which can lead to job losses.
“We can expect a serious disruption to the working economy. Higher
borrowing costs affect households directly, but they also flow through to
small businesses – a critical part of South Africa’s economy,” Roets said.
“Pressure on business cash flow can constrain expansion and hiring, while
increasing the risk of job losses at a time when unemployment is
exceptionally high.
What concerns me most is the cumulative pressure on household
affordability. “Reduced disposable income will weaken consumer
spending, further pressuring economic activity, while persistent fuel,
transport and other input-cost pressures can keep household inflation
elevated, ”Roets said.
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