HR Future published a DebtSafe article after the announcement of the South African Reserve Bank’s (SARB) repo rate hike of 25 basis points to 6%. According to the SARB governor high levels of wage growth, currency fluctuation and ESKOM increases had an impact on the decision made by the Monetary Policy Committee (MPC).
The repo rate hike has a huge impact on consumers, homeowners and homebuyers. The impact from banks will be the implementation of firmer lending regulations as well as increasing repo rates, which might have a damaging effect on people’s bond repayments.
Wikus Olivier, Debt Management Expert at DebtSafe, says this increase is not the end of the world though… “I agree that less people are going to get credit or loans from financial institutions, but when we look at the history of the repo rate, it is still not as high as it was in 1998 – when it was at its highest ever at 24%,” he adds.
He further explains how to use equity in Access Bond to pay off debt faster.