Nicolette Dirk
MILLIONS of South Africans will have to fork out more for mortgages, loans and other forms of debt following a 50 basis points hike in the repo rate.
News of the increase – from 6.25 to 6.75 percent – was announced on Thursday by SA Reserve Bank governor Lesetja Kganyagoto.
Economist Dawie Roodt said the increase was necessary to counter rising inflation caused by the weakening rand and recent droughts.
Global Credit Ratings chairperson Marc Joffe said the hike would contribute to “the perfect storm” facing the economy.
He said the Reserve Bank’s decision was the latest factor to put pressure on the economy.
“This will place further financial strain on companies and consumers,” he said.
Seeff group chairperson Samuel Seeff said this is the first of more hikes. “Basic living and property costs will climb considerably.”