DStv Channel 403 Tuesday, 05 November 2024

Interest rate hike | Loan repayments to rise

JOHANNESBURG - The monthly home loan repayment on a R1-million home will jump by R488 following the latest rate hike.

READ: Property in SA | Banks and home buyers

The Reserve bank has hiked interest rates again by 75 basis points as it acts to protect the weakening rand and stabilise inflation.

The prime lending rate at banks now climbs to 9.75 percent – closer to levels before the COVID pandemic.

This is the sixth consecutive hike in rates since November last year.

Reserve Bank Governor Lesetja Kganyago says while the bank considers the country’s growth challenges, inflation needs to be contained.

Kevin Lings, senior economist at Stanlib, says the Reserve Bank should recognise the economy may very well weaken further with the aggressive hikes.

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