Repo rate spike – Bad for the indebted, good for those with cash to spare

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The repo rate is up by 50 basis points to 4.75% as inflation bites, bringing the prime lending rate to 8.25%. Although this means that South African consumers will pay even more for their debt, it also ensures that those who managed to save will see better returns on their investments. According to Lesetja Kganyago, governor of the South African Reserve Bank (Sarb), the Monetary Policy Committee (MPC) decided to increase the repo rate, with four members preferring the announced increase and one member preferring a 25 basis point increase in the repo rate The increase was expected as a…

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