Lesetja Kganyago, the governor of the South African Reserve Bank (SARB), announced today that the repo rate (repurchase rate) will remain unchanged at six percent per annum.
Kganyago said: “As noted in previous statements, the MPC (Monetary Policy Committee) has to achieve a fine balance between realising its core mandate and not undermining short term growth unduly. The MPC has unanimously decided to keep the repurchase rate unchanged for now at six percent per annum.
“The MPC remains on a gradual policy normalisation path. The Committee will continue to monitor developments closely, and will not hesitate to act appropriately should the risks to the inflation outlook deteriorate materially. As before, any future moves remain highly data dependent.”
What does this mean for consumers?
Ian Wason, CEO DebtBusters, noted: “No change in the repo rate comes as a great relief, but consumers must not think they are in the clear just yet. The recent poor performance of the Rand against other major currencies as well as a drought that has pushed the agricultural sector into a recession in the second quarter of this year, means that food price hikes are expected. Consumers are going to end up paying more for staples such as maize, meat, eggs and dairy products.”
For tips on how to beat the food price increases, click here.
An increase in living expenses will impact on people’s ability to service their debt. When living expenses go up, people are prone to lend money in order to tide them over, which can place more strain on them, and add another expense to the list they already have to cover.
“South Africans need to prepare themselves for the storm that’s coming and must find ways of cutting back on expenses and paying back debts so that they are not forced into opening other lines of credit to pay back loans that they already have. Those that are finding it difficult to meet their debt obligations, and are dependent on credit to pay for food, must seek help from an accredited debt counsellor,” added Wason.
Interest rate remains unchanged
23 Sep 2015
Recent Articles
Featured What are the benefits of living in a “Zoom Town”?
With many careers moving online, work-from-home employees have realised they can live in smaller suburbs or towns at a lower cost and enjoy the benefits of a slower lifestyle, while keeping their jobs.
You can’t cash cheques anymore in South Africa – we find out why
In November 2020, the South African Reserve Bank (SARB) announced that cheques would be discontinued from 1 January 2021. But what guided this decision? We have a look at what the pitfalls have been of using cheques, and the consequences of removing them from the payment system.
The perks of investing in student accommodation
With the constant influx of new students entering tertiary institutions, there’s usually a steady demand for student accommodation. As an investor who’s interested in the property market, should you consider student accommodation?
Are you financially secure enough to buy your first home?
When you buy your first home, you need to make sure you’re in a secure financial position so that you can stay afloat in spite of your increased financial responsibility. But are you aware of all the costs you’ll have to carry?
Deals
Rouge Day Spa Tuesday Special
Price: Available on request
When: Tuesdays
Where: Cape Town
Monte Vista Two Nights Special
Price: Available on request
When: Until 31 December 2021
Where: Montagu
Century City Hotel 4 Nights Special
Price: From R1100
When: Until 31 January 2021
Where: Cape Town
Our suppliers and companies we review
