Interest rates in South Africa are approaching their peak, Nedbank economists say, but they’re not there yet – and the risks are very much to the upside, opening the door for even more hikes than expected this year.
This means middle class South Africans – who are already heavily indebted with home loans, vehicle loans and credit – will be paying even more to service their debts in the first half of the year.
The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) will be meeting next week for the first time this year to deliberate on the next move for interest rates in South Africa. The MPC will deliver its decision on Thursday, 26 January.
Coming off the back of elevated inflation locally and rate hike cycles in major economies, the consensus among economists and analysts is that there is still room for rate hikes in South Africa – though
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