Kaya 959 Reporter
The South African Reserve Bank (SARB) monetary policy committee has decided to increase the repurchase rate by 25 basis points to 4% per year, with effect from the 28th of January 2022.
MPC DECISION: #MPCJAN22 pic.twitter.com/sRwwvoXqA1
— SA Reserve Bank (@SAReserveBank) January 27, 2022
Kganyago also said that over the past year, the rising vaccination rates have sustained confidence and the global economic recovery, despite the rapid spread of the Omicron virus in recent months.
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What does this mean for homeowners?
SARB also highlighted that we are indeed in an interest rate hike cycle and consumers should brace themselves for more increases.
Mfundo Mabaso who is the FNB Home Finance Growth Head joined Gugulethu Mfuphi to unpack what this means for homeowners.
Mabaso advised consumers should continue to pay more for their credit while the interest rate is low.
He also gave an example of how this new interest rate hike will affect South African Homeowners.
“The prime lending rate went up from 7,25% to 7,5%, if we look at an example of someone who has a loan for a million rand, at prime, that will have an impact of an extra R 100, from an R 8000 repayment to an R8 100 repayment. “
On Thursday, the South African Reserve Bank monetary polity hiked its forecast of headline inflation for the year, from 4.3% to 4.9% –
They also said that economic and financial conditions are expected to remain more volatile for the foreseeable future.


