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Interest rates hiked by a further 25 basis points

18 March 2016 | General

The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) raised the key monetary policy interest rate – the repurchase, or repo rate – by a further 25 basis points from 6,75% to 7% per annum. Based on this hike in the repo rate (the rate at which commercial banks borrow funds from the Reserve Bank), Absa announced that its prime lending and variable mortgage interest rates will rise from 10,25% to 10,5% per annum, effective from 18 March 2016. Lending rates have risen by a cumulative 200 basis points since the start of 2014 and by 75 basis points since January this year.

SA economy’s ‘Achilles heel’ - debt vulnerability heightened in 2015

18 March 2016 | General

MMI Unisa Consumer Financial Vulnerability Index reveals consumers’ perceptions of their financial positions.

Impact of possible interest rate hike on agriculture and SMEs

16 March 2016 | General

A further hike in interest rates, whether it takes effect now or later during the year, would put more pressure on consumers, leaving businesses with no choice, but to absorb costs in the short-term as profit margins continue to shrink.