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 Can you afford an ambulance in South Africa?

When a loved one is straddling the line between life and death, you won’t hesitate to call an ambulance. This week, Justmoney found out how much an ambulance ride costs in South Africa, whether you can refuse to get into an ambulance, and who pays the bill if you’re unconscious. 

Read more

Discovery Vitality: The impact it had on my health

It’s nearly 30 degrees outside, but my windows are closed to prevent further wildfire smoke from entering my bedroom. I’m hopping around, squatting and lunging my way into my “cardio zone” so that I can earn 200 points on Discovery Vitality and meet my weekly activity goals.

Read more

Rand runs out of steam in lead-up to budget speech

For all the foreshadowing that was done last week in terms of the two big speeches by the head of states in the United States (US) and South Africa (SA), very little happened as a direct consequence thereof.

Read more

The cover you need at every age and stage

Insurance is often neglected during people’s twenties and inflated during their forties. So, which insurance products should you pursue at which age?

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

President Hotel Easter Special

Price: From R1,500
When: 15 March to 30 April
Where: Cape Town

Kulula-Preskil Island Resort Special

Price: R16,999
When: 11 May -14 September
Where: Mauritius

A Touch Of Madness Tuck In Tuesday Special

Price: R70
When: Tuesdays
Where: Cape Town