SARB puts squeeze on consumers ahead of festive season
It won't be a merry
Christmas for many consumers this year.
An economist says the latest adjustment to the repo rate will no doubt put a damper on holiday shopping plans, as the squeeze on household budgets tightens further.
The South African Reserve Bank pushed the rate up to 7% yesterday - which brings the prime lending rate to 10.5%.
Economist Dawie Roodt says the increase, which was expected, is aimed at managing inflation.
READ: SARB hikes repo rate by 75 basis points
“The average South African, especially those owing money it's starting to get tough, especially with the holiday season ahead of us. So I expect consumption to be affected by this adjustment and this is exactly what the Reserve Bank is trying to achieve."
