Debtors’ woes set to deepen

By Drum Digital
20 November 2015

By Thembisile Makgalemele

It’s turning out to be a not-so-merry festive season. The South African Reserve Bank announced yesterday that it has hiked the repo rate, the rate at which it lends banks money, by 25 basis points (0,25%) to 6,25 %.

The interest rate, the amount consumers will pay to banks for cars, houses, loans, etc. financed by financial institutions, is now 9,75 %.

Reserve Bank Governor Lesetja Kganyago explained that the deteriorating economic outlook complicated the Monetary Policy Committee's (MPC) decision.

“MPC had to decide whether to act now or later. The deteriorating economic outlook complicated the MPC's decision,” he said.

But it’s not all doom and gloom. Kganyago delivered some good news, too – motorists can expect to pay less for petrol next month.

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