• You are losing out on amazing benefits because you are not a member. Join for free. Register now.
  • Big Two-Day Giveaway - Win an Amazon Kindle, a Mystery Gadget and Branded Gear. Enter Here.
  • Test your broadband speed and win prizes worth R5,000. Enter here.

South Africa may consider rate increase in grip of a recession

Lupus

Honorary Master
Joined
Apr 25, 2006
Messages
11,205
#2
That would be a bad idea, the cost of living in SA is becoming worse and worse. We actually need relief of some sorts not more expenses.
 

Toxxyc

Expert Member
Joined
Dec 12, 2012
Messages
1,523
#3
They really should find a way to increase interest on new loans only and not on existing ones. That'll be the sweet spot - stop people from making NEW debt in times like this. Increasing payment on existing debt isn't helping anyone on the ground.
 

Kosmik

Honorary Master
Joined
Sep 21, 2007
Messages
17,325
#4
Rate increase is not a way to stimulate the economy. We are already quite high compared to rest of the world and by chasing away investors with EWC etc. it's actually detrimental to have it that high.

And lets not mention the gouging by banks.
 

Lupus

Honorary Master
Joined
Apr 25, 2006
Messages
11,205
#5
Rate increase is not a way to stimulate the economy. We are already quite high compared to rest of the world and by chasing away investors with EWC etc. it's actually detrimental to have it that high.

And lets not mention the gouging by banks.
Don't forget the false inflation figures that companies also use to give yearly cost of living increases. It actually feels like I'm going backwards sometimes.
 

Lupus

Honorary Master
Joined
Apr 25, 2006
Messages
11,205
#7
We used to deal with some Swedish guys, where the Krone isn't that much better then SA and houses were expensive, until one guy explained their interest rate is 2% so they pay less then what I'd pay for a million rand house.
 

konfab

Honorary Master
Joined
Jun 23, 2008
Messages
16,836
#8
They really should find a way to increase interest on new loans only and not on existing ones. That'll be the sweet spot - stop people from making NEW debt in times like this. Increasing payment on existing debt isn't helping anyone on the ground.
How about this: they fix the interest rate and tell the government to stop spending money it doesn't have.
 

Drifter

Honorary Master
Joined
Dec 19, 2012
Messages
16,115
#9
Don't forget the false inflation figures that companies also use to give yearly cost of living increases. It actually feels like I'm going backwards sometimes.

I know I am. We have not been given a cost of living increase in 5 years. Max was 3% if you are rated a top performer.
 

konfab

Honorary Master
Joined
Jun 23, 2008
Messages
16,836
#11
Rate increase is not a way to stimulate the economy. We are already quite high compared to rest of the world and by chasing away investors with EWC etc. it's actually detrimental to have it that high.
You don't increase the interest rate to stimulate the economy, you do it to keep the value of the currency.

All this macroeconomic tinkering is basically a smokescreen for the government's failed policy.
 
Top