DStv Channel 403 Saturday, 23 November 2024

Repo rate hike impacts bond repayments

JOHANNESBURG - The 50-basis point increase in the repo rate this week was another blow to consumers.

Property owners in particular will be feeling the pressure after ten consecutive rate hikes over the last two years.

The prime lending rate is now 11.75 percent.

But Better Bond CEO Carl Coetzee says the market remains upbeat despite the tough economic conditions.

READ: Interest rates | SARB remains long-term focused

"The cost of credit over the past 18 months has increased by about 60 percent," he said.

"We must also remember, we come out of a very low interest rate cycle.. We do we expect it to go up.

"I think the silver lining is we expect the interest rate cycle to be very close to the on the top end of it."

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