JANUARY 2023 INTEREST HIKE
Category General News
The Reserve Bank announced yet a further increase in the lending rate by 25 basis points. This means that the repo rate (the rate at which the Reserve Bank lends money to commercial banks) will increase from 7% to 7.25%, which in turn pushes the prime rate (the basic rate at which commercial banks provides financing to borrowers) up from 10.5% to 10.75%.
For one's personal finances, the higher interest rates translate to higher debt repayments, whether in respect of a mortgage, vehicle financing, student loan or other debt.
Author: STBB
