The 3 rate hikes this April – Get ready for this triple blow this month.
Most consumers have been feeling the pinch of higher prices and the need for more credit. Just as you thought things couldn’t get tighter, get ready for this triple blow in April:
Interest rate hike
On Thursday, 30 March, the South African Reserve Bank (SARB) voted to hike interest rates by 50 basis points.
Interest rates are currently sitting at their highest point in 13 years since the global financial crisis.
The repo rate is now 7.75% and the prime lending is 11.25%, your car and bond payments will cost you a lot more going forward. Bond payments will increase at R341 per million rand of mortgage or part thereof.
The risk to inflation is what is putting pressure on the repo rate according to the governor.
The economic and financial conditions are expected to remain volatile for the foreseeable future.
Inflation is now expected to revert to the mid-point by the final quarter of 2024.
Electricity rate hike
From 1 April 2023 consumers will be paying 18.65% more for their electricity.
Consumers will likely now look at alternative sources however these come at a high price and are not always the solution. What most people don’t realize about rooftop solar is no sun = no power, being totally off the grid comes at a high price and no solid guarantees.
Medical aid rate hike
From 1 April 2023 Medical Aids will be increasing their rates between 5.9% and 8.2%.
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