Reserve Bank To Hike Repo Rate Next Week, Looming Increase Worries South Africans: “Returned My Financed Car”

• The South African Reserve Bank (SARB) will reportedly hike the repo rate this coming Thursday
• Economic analysts said citizens should brace themselves to spend more on their monthly repayments
• The news of the looming increase worried people, and they posted on social media how they would be affected

PRETORIA - South African Reserve Bank (SARB) is set to make an announcement about the repo rate on May 25.

Economists have predicted that the central bank will hike the repo rate by approximately 25 to 50 basis points, reported SABCNews.

According to BusinessTech, this will be the tenth hike in the rate cycle that started in November 2021.

Rand crashes to a three-year low against the US dollar

The local currency also weakened two weeks ago and dropped past R19/US$ for the first time in three years after the United States Ambassador to SA, Reuben Brigety, accused the country of supplying Russia with weapons.

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Most South Africans are already struggling to make ends meet, and the near future seems bleak with the added stress of loadshedding.

SA citizens weigh in on the expected repo rate increase

Nare Adam said:

"Whether they increase repo rate by 50 or 75 basis points, it will not help to curb inflation but to further destroy middle-income earners."

Ntombiyamawelase Mazibuko mentioned:

"Like there's never a time where we hear good news in South Africa."

Floyd Mahlaule added:

"Poor people are going to suffer now, imagine someone expecting money for social relief grant. South Africa is becoming the darkest county in the world."

Kgwitsimang Mpeyisi wrote:

"It doesn't sound good, if the repo rate goes up, then the prime landing will increase. Bonds, mortgages will increase."

Pk Xulu commented:

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"I saw this one coming, it's one of the reasons why I returned my financed car."

Capitec reveals South Africans are getting poorer as incomes fail to match inflation, SA blames SARB and Govt

In another article, Briefly News reported that new data from Capitec has confirmed what South Africans have been feeling for a while: citizens are getting poorer.

Capitec provides banking services to 20.1 million clients, over a third of the South African population. The bank says its clients became poorer in the financial year that ended in February.

Source: Briefly News