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Rate hike will be devastating blow for consumers

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Cape Town - A widely expected rate hike by the South African Reserve Bank (Sarb) on Thursday is going to have a devastating impact on consumers, Debt Rescue CEO Neil Roets told Fin24.

He said all indications are that Sarb will increase the repo rate by 0.5%. This comes on top of a proposed 8% hike in electricity rates.

Further repo rate increases will almost immediately translate into higher prices for all commodities including food, warned Roets. "The immediate future looks dismal for all consumers, but especially for consumers with heavy debt loads.

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