Reserve Bank’s interest rate hike pulled into question

thestaggy said:
Are we pretending there isn't a cost of living crisis?

The fuel price has shot up 38% (95) in 3 months, with diesel going up 50-60% in the same period.
The rise in the price of diesel specifically has filtered through into the price of basic goods.
Gas has gone up 20-25% (we have a gas oven and gas geyser)
Medical aid increased by 7%

My salary hasn't moved an inch.

I buy R1000 electricity a month. Switch lights on only in the room where I need them. I barely switch my gaming PC on anymore (don't worry, I saved and bought components cash) because it chows electricity.

It is a bit cheeky to tell people to live within their means when millions of us are cutting where we can and scraping by.
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I's not going to get in any better in South Africa. We are outnumbered by 70 IQ muppets who choose our leaders who are sinking the ship. Taking on debt will just send us circling around the drain in turbo mode.

Higher interest rates forces people to stop taking unnecessary debt they think they need to keep up with the Joneses, and rewards you for saving. It's not complicated.

It might make the rich richer and hit lower income families harder, but without it inflation would skyrocket out of control and everything would cost 15% more next year anyway.
 
Sensorei said:
I's not going to get in any better in South Africa. We are outnumbered by 70 IQ muppets who choose our leaders who are sinking the ship. Taking on debt will just send us circling around the drain in turbo mode.

Higher interest rates forces people to stop taking unnecessary debt they think they need to keep up with the Joneses, and rewards you for saving. It's not complicated.

It might make the rich richer and hit lower income families harder, but without it inflation would skyrocket out of control and everything would cost 15% more next year anyway.
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it also curtails government spending, less taxes and less flexibility with auctioning off its treasury bonds

if the banks prints less money, they will have less of it to purchase government debt
 
thestaggy said:
Are we pretending there isn't a cost of living crisis?

The fuel price has shot up 38% (95) in 3 months, with diesel going up 50-60% in the same period.
The rise in the price of diesel specifically has filtered through into the price of basic goods.
Gas has gone up 20-25% (we have a gas oven and gas geyser)
Medical aid increased by 7%

My salary hasn't moved an inch.

I buy R1000 electricity a month. Switch lights on only in the room where I need them. I barely switch my gaming PC on anymore (don't worry, I saved and bought components cash) because it chows electricity.

It is a bit cheeky to tell people to live within their means when millions of us are cutting where we can and scraping by.
Click to expand...
There is a cost of living crisis for many, but the interest rate hike was required so disagree with the industry body. Not sure why there are people calling for a 20% interest rate, would love to see if they would have the same tune if they were taking out their first bond or did they have the equivalent of R2m cash for a house, because most couples in their late 20's will never have that.
 
Sensorei said:
Like we should. Without relying on taking debt when we want stuff, and living beyond our means.
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Except the reality is that most people did until the ANC came along and killed the economy with Covid policies and an utter inability to run anything. Most people in trouble now days thought it was a rough patch we would weather, took time for most to realize that things will never get better.
 
thestaggy said:
The average South African is counting pennies to survive, and no, we are not trying to keep up with the Jonses.
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New car sales, iPhone sales, Galaxy S26 sales etc tell a different story.

Yes, SA is a low wage country, but our discretionary sales numbers point to more than simply survival spending.
 
Kyle15 said:
There is a cost of living crisis for many, but the interest rate hike was required so disagree with the industry body. Not sure why there are people calling for a 20% interest rate, would love to see if they would have the same tune if they were taking out their first bond or did they have the equivalent of R2m cash for a house, because most couples in their late 20's will never have that.
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Boomers , that bought there houses for 10k in the 80's and sold it off for 5 mil
 
Kyle15 said:
There is a cost of living crisis for many, but the interest rate hike was required so disagree with the industry body. Not sure why there are people calling for a 20% interest rate, would love to see if they would have the same tune if they were taking out their first bond or did they have the equivalent of R2m cash for a house, because most couples in their late 20's will never have that.
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house prices will drop significantly...

try again...
 
Bad Ballie said:
Except the reality is that most people did until the ANC came along and killed the economy with Covid policies and an utter inability to run anything. Most people in trouble now days thought it was a rough patch we would weather, took time for most to realize that things will never get better.
Click to expand...
Should have known from seeing how all our sister countries in Sub Saharan Africa are poverty-stricken dumps post-colonialism.

They couldn't make the shift to functioning civilisation from iron age tribalism. We aren't praying our way out of this mess, and nobody's coming to save us.

Upskill or up and go.
 
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Sensorei said:
Should have known from seeing how all our sister countries in Sub Saharan Africa are poverty-stricken dumps post-colonialism.

They couldn't make the shift to functioning civilisation from iron age tribalism. We aren't praying our way out of this mess, and nobody's coming to save us.

Upskill or up and go.
Click to expand...

correlation is not causation
 
Sensorei said:
Should have known from seeing how all our sister countries in Sub Saharan Africa are poverty-stricken dumps post-colonialism.

They couldn't make the shift to functioning civilisation from iron age tribalism. We aren't praying our way out of this mess, and nobody's coming to save us.

Upskill or up and go.
Click to expand...


you say that as if europe was civilised for thousands of years
 
saturnz said:
correlation is not causation
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Incomplete statement... Correlation is not causation unless the underlying association between the variables has been shown to be a direct cause and effect relationship through logical elimination of other explanations, or scientific testing likeIQ tests and plenty of research showing cyclical poverty-conflict traps in Sub Saharan Africa. So over this.
 
SeRpEnT said:
Source?
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There are monthly fluctuations, but car sales numbers are clearly up since 2020.

South Africa Total Vehicle Sales

Total Vehicle Sales in South Africa increased to 51070 Units in May from 47890 Units in April of 2026. This page provides the latest reported value for - South Africa Total Vehicle Sales - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic...
tradingeconomics.com tradingeconomics.com
 
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