SARB set to hike repo rate again on Thursday
Economists are
warning life is about to get more expensive for indebted South Africans
The Reserve Bank's Monetary Policy Committee is holding its first meeting of the year this week.
A repo rate announcement is expected on Thursday.
The prime lending rate currently stands at 10.5% following a series of hikes as the central bank battles to keep inflation under control.
Efficient Group chief economist Dawie Roodt thinks we're in for another 50 basis point hike, followed by a 25 basis point increase in March.
"In total, I think the Reserve Bank should increase interest rates by another 75 basis points, or another three-quarters of a percent. I then expect interest rates to remain unchanged for a couple of months."
Roodt believes the repo rate might start coming down later in the year.
"By the end of this year or the second half the Reserve Bank may consider reducing interest rates again. If the Reserve Bank decides to go for a 50 basis point increase now, it could be the last increase in the current cycle."
