Will Interest Rates Go Up?
The SA Reserve Bank will soon announce their decision about the Repo Rate. Will it go up, stay the same or even come down?
Why it Matters
Most people in South Africa have debt. All credit providers charge interests on those debts. And what they can charge is linked to the Repo Rate.
The SA Reserve Bank set that rate and thus if that rate goes up or comes down it either means everyone has to pay more in interest fees to the bank each month or less.
What Should We Expect?
It is unlikely that the rate will drop at this point (but wouldn’t that be nice for a change?).
A lot depends on the current inflation statistics which will soon be announced by Stats SA.
Most experts seem to say they think the inflation figures have stabilized within the SARBs preferred target range. If so, that may point to no change.
At the same time other factors like the rand to dollar have also seemingly stabalised (although there have been some short term ups and downs with the Rand to Dollar recently). Overall the currency seems to be holding steady. This may then also point to things remaining the same.
The announcement by the SARB Monetary Policy Committee will be made on the 23rd November 2023.