May 2022 Debtfree DebtBusters Special Edition
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REPO RATE INCREASE<br />
The Repo Rate, which the banks borrow money at, was<br />
recently increased by the SA Reserve Bank. The latest in a<br />
series of coming increases came a little earlier than people<br />
had hoped and was a bit higher than originally expected (50<br />
Basis points instead of 25).<br />
Higher than hoped for inflation and lower than hoped<br />
for economic growth (influenced by Eskom power cuts,<br />
flooding in KZN and war in Ukraine) drove the Monetary<br />
Policy Committee to make the choice to make the, bigger<br />
than hoped for, increase sooner.<br />
This means that consumers who have debts linked to the<br />
prime interest rate (which is in turn linked to the Repo Rate)<br />
will now have to pay more for their existing debt.
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