Consumers who are considering purchasing houses and cars have been warned to hold their thoughts.

The warning comes from economist Bonke Dumisa following the recently announced repo rate increase of 50 basis points to 8,25%.

The repo rate increase has affected many people.

Weekend Witness posted a question on Facebook asking people how the recent increase has affected them and Nadine Franzsen said she bought her first property in 2022 and, since then, her bond repayment has increased to over R4 500 a month.

Speaking to the Weekend Witness, Nondumiso Mahlambi said her car installment has increased at least three times this year alone.

“It’s really frustrating because I don’t have a specific amount of money I have to pay back and that prevents me from budgeting accordingly. My car instalment is increasing, however my salary is stagnant.”

Dumisa said the SA Reserve Bank sees the tactic of increasing the repo rate as a solution for fighting inflation.

“However, by increasing the repo rate, they are not pulling the inflation rate down, in fact they are pushing it up and that is why we see inflation coming down to about 6,8% and then shortly after it goes back up again.”

He added that where it is an option to delay a purchase, people must take it because the repo rate is at its highest since 2009 and if you buy a house or a car at this level, when the rates start going down, they don’t adjust the rates as they did when the rates were increased.