The South African Reserve Bank kept the repo rate at the record low of 3,5% at its Monetary Policy Committee meeting this afternoon.
While UASA welcomes the unchanged rate, a drop of 50 or even 25 basis points would have benefitted the tightly stretched household finances of most South Africans and struggling companies, provided relief to the over-indebted and stimulated business.
Economists agree that the interest rate will rise later this year or early next year at the latest. UASA reminds its members and consumers in general to make sound financial decisions by paying off debts and saving all they can. With the third Covid 19-wave making itself felt and more lockdowns looming uncertain times are not yet something of the past.
Unemployment may rise even more, and third-wave lockdowns will without doubt ravage affected industries.
UASA urges South Africans to continue keeping a tight budget and be wise with their finances. The Covid-19 pandemic proved that uncertain times may strike one’s finances at any time. Being prepared and careful is essential.
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