The Repo Rate goes up

Most economists predicted it and it has come about that the Repo Rate which has been at record lows has now been increased by 0.5% (50 base points). Some of the reasons given relate to to keeping inflation under control and and the recent depreciation of the rand. The cost of fuel was also mentioned. In December and Jan petrol went up 55 Cents in total and is set to go up another 30 cents in the next few weeks due to the weak Rand. Increasing food prices also are of concern. The price of Maize has shot up by over 30% in the last 6 months alone.

5.5%

This means the Repo Rate now sits at 5.5%. Meaning a practical increase in many bond, car and loans of at least an additional 1%. Prepare to pay more.