Another jumbo interest rate hike announced
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Professor Bonke Dumisa - Independent economic analyst
Interest rates are now at their highest level since 2016 after the SA Reserve Bank hiked rates by 75 basis points, for the third meeting in a row.
Three members of the monetary policy committee voted in favour of the 75 basis point hike, while two wanted a 50 basis point increase.
The move brings the repo rate to 7%, and the prime rate to 10.5%.
On a new home loan of R2 million at the prime rate, the latest increase hikes the monthly instalment by around R1 000. Since November last year, monthly payments on a R2 million home loan are almost R4 500 more expensive due to a raft of rate hikes.
The latest rate hike was in line with economists' expectations.
On Thursday, Governor of the SA Reserve Bank, Lesetja Kganyago, warned of high inflation and weak economic growth.
Interest rates are now at their highest level since 2016 after the SA Reserve Bank hiked rates by 75 basis points, for the third meeting in a row.
Three members of the monetary policy committee voted in favour of the 75 basis point hike, while two wanted a 50 basis point increase.
The move brings the repo rate to 7%, and the prime rate to 10.5%.
On a new home loan of R2 million at the prime rate, the latest increase hikes the monthly instalment by around R1 000. Since November last year, monthly payments on a R2 million home loan are almost R4 500 more expensive due to a raft of rate hikes.
The latest rate hike was in line with economists' expectations.
On Thursday, Governor of the SA Reserve Bank, Lesetja Kganyago, warned of high inflation and weak economic growth.
