Surprise interest rate hike

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Zyzzyva

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Cape Town - The South African Reserve Bank (Sarb) has hiked its key lending rate by 50 basis points to 5.5%, governor Gill Marcus announced on Thursday.

This implies that banks will also increase their prime lending rate.

Marcus, who last cut the repo rate in July 2012, announced the decision following the monetary policy committee's first meeting of the year.

- Fin24
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http://www.fin24.com/Economy/Surprise-interest-rate-hike-20140129
 
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It is a bit surprising considering our inflation hasn't been extremely high.
 
Fek it... Gonna have to see how my bond repayments go up :( belt has to get tighter now
 
Consider ourselves lucky as turkey went from 4.5% to 10% overnight.
This is only the start of a long trend upwards.
Hopefully people will stop relying so much on credit and live within their means.
 
Holly ****! Just got my first increase in 5 years ... and now its gone :mad:

&%#$ &%#$ &%#$ !!!
 
Garson007 said:
Why? Inflation wasn't high enough to motivate it.
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Only in your mind :D

There have been signs of over indebtedness for a long time, as well as the currency issue.

Rates have been too low for too long, and we are paying for it with the FX rate.
 
lucifir said:
Consider ourselves lucky as turkey went from 4.5% to 10% overnight.
This is only the start of a long trend upwards.
Hopefully people will stop relying so much on credit and live within their means.
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This country can't afford to have it go much beyond 10% if you ask me..

The level of house repo's will go through the roof and it will cause untold chaos in the banking sector.
 
And the Rand loses value.... everyone was expecting it to improve on the news. :(
 
ToxicBunny said:
This country can't afford to have it go much beyond 10% if you ask me..

The level of house repo's will go through the roof and it will cause untold chaos in the banking sector.
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On the + side there might be some good deals properties coming our way soon :D. Sorry for those who bought borderline affordable, good thing I turned down a prime -1% on a property because I thought there's too much upward risk on interest and told the bank I will only accept prime -2
 
ToxicBunny said:
This country can't afford to have it go much beyond 10% if you ask me.
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It won't happen. CPI is too low (CPIX is high though). People will start seeing their short term savings grow if it was raised to 10%. Economy will halt and we might even see deflation.
 
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