Those South Africans in debt are set to face further pain later this week with interest rates wildly expected to be hiked. Photo: Supplied
BREAKING | Interest rate HIKE announced: Biggest in 20 years!
Lesetja Kganyago, governor of the SA Reserve Bank, on Thursday, hiked the repo rate by another 75 basis points.
Those South Africans in debt are set to face further pain later this week with interest rates wildly expected to be hiked. Photo: Supplied
Lesetja Kganyago, governor of the SA Reserve Bank, on Thursday, hiked the repo rate by another 75 basis points.
This brings the repo to 5.5% and the prime rate to 9%.
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Three (of the five) members of the monetary policy committee supported the increase, while one wanted 100 basis points and another preferred a 50 basis point hike.
The increase represented the biggest hike since September 2002 when the repo rate was hiked by 100 basis points.
The latest hike follows the shocking inflation number that was released on Wednesday, indicating that consumer inflation reached 7.4%, the highest level in 13 years.
What does the latest increase mean for those with bond repayments to pay?
On a new home loan of R2 million at the prime rate (9%), the latest hike will increase payments by R950 a month.
The monthly payment on a R2 million mortgage has now climbed by almost R3 000 since November 2021.
