Slow down

The message from the SA Reserve Bank governor is clear. Consumers, slow down. And while there was general surprise in the rate increase, something had to be done, especially when one considers the high level of indebtedness of the average South African ho

Sitting in the MPC presentation I seem to hear the governor say that it was running at 68% of household income a high percentage indeed.

The increase may bring some relief to pensioners who own their own homes and dont have any debt, especially those who are living on their monthly interest cheques.

For everyone else, the biggest suffers will be those that have speculated in certain investments, and mortgaged themselves to the hilt to take advantage of the so-called and rapidly deflating buy-to-rent residential property market.