SA Reserve Bank hikes rates

[PaulMurkin]

Credit bureaus, banks and businesses have been reporting struggling consumers and noted concern. Increasing interest rates while people already struggles to repay debt is not always the best decision and other factors affecting the economy, and even more so inflation, will now come into play, which would not have been the case had it not been for the effects of Covid on the economy.

We will see how this plays out.

The banks feel nothing for the consumer. For them its nice and easy, they have lawyers on tap, to get default judgements and take your stuff. Their concern is genuinely fake. They've been reporting "struggling consumers" for years now. The fact remains this is a carbon copy of Zimbabwe, what did they expect?

 

[ToxicBunny]

Po3s... they should have left it for a bit longer, I was enjoying pay down my debt a bit faster.

 

[Kosmik]

How will this affect a homeloan that was previously 7.1%, 900 000, 20 years, full amount?

You now can't buy the necessary six pack of lube every month anymore, so its dry time.

 

[RedViking]

You now can't buy the necessary six pack of lube every month anymore, so its dry time.

So no affect then?

 

[ToxicBunny]

So no affect then?

For you, nope.. no affect

 

[RedViking]

For you, nope.. no effect

Some affect, but no effect?

 

[ToxicBunny]

Some affect, but no effect?

Bleh... I'm gonna go back to staring at stupidly large spreadsheets...

 

[RedViking]

Bleh... I'm gonna go back to staring at stupidly large spreadsheets...

Hope you excel at that.

 

[Sinbad]

Hope you excel at that.

W0rd

 

[Mista_Mobsta]

It is shocking for me how few people understand the difference between demand pull and cost push inflation and which intervention controls what. Most don't even know there are 2 different types of inflation.
Then I look at our education system and it makes sense.

This

100% this
I get that inflation is a global trend but the fact that Core CPI isn't really affected just goes to show that the inflation is mainly due to energy supply issues which directly impacts transport costs etc.

You want people to start spending more in the economy and not withholding extra spending, especially after the COVID stagnation effect in our economy.

 

[Scooby_Doo]

How will this affect a homeloan that was previously 7.1%, 900 000, 20 years, full amount?

Your interest rate will rise to 7.35%

 

[Grubscrew]

So is now a good time to buy or sell a property?

It is always a good time.

 

[surface]

So is now a good time to buy or sell a property?

yes.

 

[diapason]

We need to up consumer spending in SA

Pensioners are also consumers and the low interest rates hit us as for many of us part of our income is interest.

 

[RonSwanson]

So is now a good time to buy or sell a property?

Only if you are using it to bury gold.