And up we go

Why do they not make legislation that forces people to pay a 50% deposit on things like furniture purchases? Instead of effecting changes that simply force people to push up prices? A higher interest rate simply means that businesses which are repaying bank-loans are now going to increase their prices anyways. How-the-dreck does more expensive goods improve the quality-of-life for people who are not even remotely able to afford property?

Not only does the repayments on credit increase, but everyday costs increase too! This is insane.
 
for the love of all that is holy!!!!!!!!!!

Thankfully I don't have credit in SA terms!
 
I thought the new credit act was suppose to curb consumer credit so why hike up the interest rate aswell clearly the act is not doing what it was designed to do. Something doesnt smell right.
 
Gunny said:
I thought the new credit act was suppose to curb consumer credit so why hike up the interest rate aswell clearly the act is not doing what it was designed to do. Something doesnt smell right.
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You are right, it is almost as if they do not know what they are doing ...
 
Repo Rate increase

South Africa's Reserve Bank raised its key repo rate by 50 basis points to 10.5......

Bread and water for me.
 
No, I think the Mboweni dude is one of the few that do know what cooking. The credit act is designed to curb irresponsible credit granting, not credit grant on the whole. I'd guess the increase is meant to reduce inflation, which is above the 3/6 bracket.
 
he really is an @sshole. And we pay for his mansion out of our taxes.
 
If they are trying to curb inflation they may be trying too hard imho.

This is why I will never trust these people ever in my life. The thoughts of 98 and 99 still vivid in my mind when the interest rates topped out past 25%! No thanks. Not going out and taking the plunge and Mortgage myself to the hilt as anything can happen in this country and market place.
With Zimbabwe in economic ruin, little bits and pieces of that are filtering into our economy. People are struggling to make ends meet and food just gets more and more expensive by the day. No wonder people are striking for a living wage.
Expect The Rand to strengthen. R6 to the $?
Car Dealers must be miffed.
 
He ups the rates because the food prices go up, how can we ever change that, and now we are penalised for something beyond out control.
 
caspa said:
South Africa's Reserve Bank raised its key repo rate by 50 basis points to 10.5......

Bread and water for me.
Click to expand...

Just if someone is maybe confused.
10.5 % is the repo rate the Reserve Bank charge the Banks.
Banks will increase Prime to 13.50% now. :(
 
duderoo said:
He ups the rates because the food prices go up, how can we ever change that, and now we are penalised for something beyond out control.
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Exactly, he said the 2 main reasons for inflation about 6% is because of the oil price, hence higher petrol price and food prices.
Not much he can do there! :(
 
why don't we get SASOL petrol for cheaper is beyond me. At least get rid of petrol!
 
Great for people who have cash in the bank.

Perhaps we are making too much of this hike?
I just feel that Government should have introduced The NCA several years ago and we may have avoided the credit urge and prime lending rates would be below 10% by now.
The Rate Hike should in the long run be beneficial in a different sense, as in a few months time or a year or so Banks will be clamouring to lend us money again when the Credit splurge/appetite wanes.
These things are cyclical. Only problem we may have is if international investors decide to pull out and place their money in other "safer" markets, then we are all stuffed as no high interest rates from the Reserve Bank will keep the money in South Africa.

It is obvious that the markets had probably thought rates were going to remain the same?
 
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