Interest rate increases – consumers warned
A bumpy road is lying ahead in the property sector due to a rate hike.
The South African Reserve Bank (SARB) has announced an interest hike of 50 basis points, which takes it to 6.75% from 6.25%.
This decision is going to be a hard blow for all South Africans, but even more so for first-time home buyers.
An increase in interest rates can be positive for people who have saved and have been missing out on interest on their deposits.
The change could also be transmitted to a range of other interest rates, including car loans, credit cards and home loans, which makes them more costly.
Ursula Oosthuizen commented on the Addie’s Facebook page, saying: “Besides the interest rate, no one actually cares about the elderly.
“How do you live on R1 400 per month, pay rent and afford medicine or a decent meal and clothes?”
South Africa’s highest interest rate was 23.99% and its lowest was 5%.
This means that although SA has seen harder times, consumers will still need to tighten their belts even more this year.
Source: www.ig.ft.com
