Guiding consumers since 2009

Interest rate remains unchanged

By Staff Writer
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.

Recent Articles

Featured The bank took money from my account – is this allowed?

You’ve just deposited money into your account and suddenly you see a notification from your bank. Money has been deducted from your account to pay the outstanding debt that you have with the bank. Is this allowed?

How much does it cost to draft a will?

Having a Will allows you to determine who inherits your property when you die. If you die intestate, the government will determine how to distribute your assets. Many people die intestate because they don’t know how to draft a will or are intimidated by the costs of drafting one.

Is your home correctly priced for the current market?

The property market is typically in either one of two phases, a buyers’ market or a sellers’ market. According to real estate experts, we are currently in a buyer’s market. For this reason, it is important as a seller to correctly price your house to ensure interested buyers and a valuable sale in the end.

Fuel rewards programme – how to fill up on petrol and points

South Africa’s volatile economy has often meant that factors like the fuel price bear the brunt. This year alone the country’s fuel price has fluctuated by between R1.50 to almost R3, which has put increasing pressure on motorists. That said, many of the bigger South African brands have provided some relief by way of fuel rewards programmes.

Deals

Wax On Wax Off Wednesdays at Rouge Day Spa

Price: From R50
When: Wednesdays
Where: Cape Town

Aarya Restaurant Christmas Lunch Special

Price: R425
When: 25 December 2019
Where: Johannesburg

Da Vinci’s Tantalising Tuesday Pizza Special

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