Guiding consumers since 2009

Rate hikes and a recession

By Staff Writer

'Rate hike will cause recession'

From Fin24.com 

An increase in interest rates by the SA Reserve Bank will slow down the economy and result in recession and job losses, the United Association of South Africa (Uasa) said on Thursday. Spokesperson Andre Venter said the union was deeply concerned about Reserve Bank governor Tito Mboweni's warning that interest rates may rise by up to two percentage points next month. "Our contention is that if interest rates are raised that much under the present economic conditions, it will slow down the economy even further, resulting in recession and jobs being lost," Venter said.

Justmoney.co.za says:

The economy is stalling, there is contention over whether the interest rate hike will have the desired effect of bringing inflation under control. The reality is that whatever method is applied, things will get worse before they get better. There is no magic bullet that has an immediate economic effect. Changes to the economy take time to manifest. With the pressures on day to day living expenses increasing, now is the time to make sure that your finances are in a stable state. Check that your savings accounts and bank accounts are delivering value for you. Make sure your credit card is providing the best possible deal. Review your vehicle insurance and your life insurance, re-consider your medical aid. Decide whether a personal loan might be neccessary to consolidate your debt.

Whatever you do, look at your finances before June 12th!

 

Recent Articles

Featured New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Translux Student Discount

Price: Depends on destination
When: Daily
Where: Nationwide

Zimbali Senior Citizens Discount

Price: From R1342.00
When: Until 14 December 2019
Where: KwaZulu Natal

Free meal for kids at Mozambik Restaurant

Price: Free
When: Until 15 November 2019
Where: Johannesburg, Durban, Pretoria