Interest rates hit 14.5%

By Staff Writer

From Fin24, 6 December 2007

Reserve Bank governor Tito Mboweni took the spirit out of Christmas shopping for many borrowers when he raised interest rates by another 50 basis points, in line with expectations.

This takes the repo rate, the rate at which the Reserve Bank lends money to commercial banks, to 11% and the prime lending rate to 14.5%.

The bank has now hiked interest rates by 400 basis points since tightening began in June last year.

Analyst polled by I-Net Brdige and Reuters all expected a 50 basis point increase on the latest economic indicators, notably the bank's inflation target, CPIX's, surge to 7.3% in October.

Mboweni warned repeatedly in the run-up to Thursday's announcement that consumers need to tighten their belts.

In a precursor to the decision, Mboweni barred photographers from the bank's news conference and changed the format of its rates presentation.

Usually, Mboweni reads a prepared statement before delivering the Monetary Policy Committee's verdict on rates. On Thursday, the repo rate verdict was announced first.

Tell us what you think about the latest rate increase by voting in the Justmoney.co.za poll on the home page.

Check out Justmoney.co.za's Five Festive Fixes for ways of reducing the impact on your pocket during the holiday season.

Recent Articles

Featured Do you need credit to survive Easter?

Easter weekend is here and with it the expectation of celebration. While there is nothing wrong with this, it often means spending more money than you bargained for.

 

Read more

Young woman building a legacy brick by brick

When her dad passed away, Siyasanga Ngcongca, an internal auditing graduate, took over the family business. Ngcongca Construction, as her company is known, is a service provider to five insurance companies, handling building and commercial claims.

Read more

Can you evict paying residential tenants?

One of the most common reasons for wanting to evict a tenant is non-payment of rent. But there are many other situations that landlords may encounter. These can range from damaging property and breaching contract, to being reported as a continuous disturbance by neighbours.

Read more

How one entrepreneur designed her financial future

From as early as Cannon remembers, she recalls her grandmother seated behind a sewing machine. Through this influence she was sewing her own aprons and doll dresses by the time she was ten, and by the time she was 16, she started designing and make her own clothes.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Hartbeespoort Romantic Weekend Special

Price: R2,999
When: Weekends
Where: North West

Da Vinci Happy Hour

Price: Available on request
When: Weekdays
Where: Cape Town

Glenburn Spa Easter Package

Price: From R1,065
When: 18 -22 April
Where: Muldersdrift