Mzansi Left Reeling After Reserve Bank Hikes Repo Rate by 50 Basis Points to 7.75%: “I Can Barely Survive”

• South Africans are on edge after the SA Reserve Bank announced another repo rate increase on 30 March
• The 50 basis point increase will see the repurchase rate skyrocket to 7.75%, higher than experts predicted
• Cash-strapped citizens are considering forgoing essentials like medical insurance just to brace for the increase

JOHANNESBURG - South Africans are already struggling under the weight of high unemployment rates and soaring living costs.

As if that isn't enough to contend with, the South African Reserve Bank (SARB) raised the repo rate by 50 basis points on Thursday, 30 March, bringing it to a steep 7.75, EWN reported.

SARB governor Lesetja Kganyago said the repo rate hike will take effect on Friday, 31 March 2023. The increase means that the prime interest rate given out by SA banks will increase from 10.755 to 11.25%, IOL reported.

Read also

Canadian woman shares epic view of her Cape Town holiday apartment

The 50 basis point hike goes against predictions as economists and analysts had pinned their hopes on the hike being limited to 25 basis points.

Mzansi in despair over the 50 basis point repo rate hike

The repo rate hike has South Africans sick to their stomachs, with many wondering how they will cope with loan and insurance repayments.

Below are some comments:

@Steville_1982 said:

"Great, soon we'll all be living in one great big tent, with the 50% median unemployment data, Eskom, soon SARS will join us... This is the breaking point, we already reached it."

@M_uyazi added:

"I might have to cancel my vehicle insurance at this point."

@abmmbyz slammed:

"Now this is not justified."

@itsVusi_Thato commented:

"I think I should sell this house, I can barely survive... All thanks to the useless government."

Read also

Hong Kong leads Asian markets higher on Alibaba boost

@marete001 complained:

"Next month electricity is going up by 18%."

@NZombini claimed:

"The cost of living is unaffordable for me at this point. Rates and taxes will have to suffer, shame."

@SEMolekwa stated:

"What goes up must come down. This is not sustainable in a country with high unemployment."

How will the repo rate increase impact ordinary South Africans? How it works and 4 other questions answered

In a related story, Briefly News reported that the South African Reserve Bank set alarm bells ringing across the country when it announced that the repo rate would be increased by 25 basis points on 27 January 2023.

Understandably, ordinary South Africans are worried much how the rate hike will hurt their pockets and how they can come out at the other end of the increase with their finances intact.

Briefly News reached out to independent economic analyst Professor Bonke Dumisa to get answers to the nation's most pressing questions.

Source: Briefly News