So, there we have it, as I expected, the long-awaited rate hike by the SA Reserve Bank (SARB). I believe Ms Marcus has done the right thing at long last by increasing the REPO Rate by 50 basis points - which should result in a quick 0,50% increase in the various banks rates to their customers, and I expect that they might have to increase rates again at least once this year. As it is, I honestly believe the rate should have been increased by quite a bit more - as some of the other countries have done. 100 to 200 basis points would have had a much better effect for 2014, but I guess that would have resulted in some serious problems for folks with large loans. Its time for SA consumers to start getting wise to what they SHOULD be doing, rather than just continue spending unabated. Markets have been positive since opening this morning, and this could very well throw the cat amongst the pigeons.
Posted on: Wed, 29 Jan 2014 13:37:15 +0000