Economist warns more repo rate hikes on the cards
An economist says
even though it's a huge relief that the South African Reserve Bank is finally
in a position to halt repo rate increases, indebted consumers are not entirely
out of the woods.
The Reserve Bank’s Monetary Policy Committee decided to keep the repo rate unchanged at 8.25% on Thursday.
Economist Dawie Roodt says this is a possibility for a further tightening of monetary policy.
"I'm pretty sure that the worst is behind us for now."
READ: Lower inflation could have ‘positive impact’ on repo rate
Roodt says inflation is finally showing some signs of coming down.
"The Reserve Bank has to be quite successful. This was a very tough battle, it might be necessary to increase the interest rate again. Now I think the worst is certainly around that this was the right thing to do."
