Interest Rates Set To Go Up Again?
It is likely that the SARB MPC are about to raise the Repo Rate again. The question is: By How Much?
The SA Reserve Bank Monetary Policy Committee will meet in Jan and discuss possible changes to the current Repo Rate (the rate that they lend money to the big banks, which is also the rate that the banks then use to figure out how much they are allowed to charge their credit clients).
‘Economists are saying that …it is almost guaranteed that there will be an increase’
Economists are saying that with inflation remaining so high it is almost guaranteed that there will be an increase. The real question being will it be a 25 base point increase of a 50 point one.
Either way it will mean that the banks will push up their rates and those who have credit will have to pay more in interest for the money they owe. This will of course, have the biggest impact on those with really big loans and bonds.
So, if you are already taking financial stress, it might be a good time to freak out and then talk to a Debt Counsellor about what options you have to bring your monthly debt costs down.