SA consumers feeling the squeeze as interest rates reach new heights

The increasing interest rates in South Africa are putting a strain on consumers who are already struggling financially.

1. The South African Reserve Bank (SARB) has increased the repo rate by 300 basis points since the beginning of the pandemic, which has led to higher borrowing costs for consumers.
2. The high interest rates are affecting various sectors of the economy, including the housing market, where mortgage applications have decreased due to affordability concerns.
3. The rising interest rates are also contributing to the country’s high levels of debt, as consumers struggle to make ends meet and resort to borrowing.
4. The SARB is expected to continue with its monetary tightening cycle, which will further increase borrowing costs for consumers.