20°C / 22°C
  • Sun
  • 27°C
  • 8°C
  • Mon
  • 29°C
  • 11°C
  • Tue
  • 30°C
  • 12°C
  • Wed
  • 32°C
  • 13°C
  • Thu
  • 28°C
  • 15°C
  • Fri
  • 27°C
  • 12°C
  • Sun
  • 18°C
  • 10°C
  • Mon
  • 19°C
  • 13°C
  • Tue
  • 22°C
  • 13°C
  • Wed
  • 26°C
  • 13°C
  • Thu
  • 31°C
  • 15°C
  • Fri
  • 19°C
  • 14°C
  • Sun
  • 28°C
  • 11°C
  • Mon
  • 30°C
  • 12°C
  • Tue
  • 32°C
  • 14°C
  • Wed
  • 32°C
  • 15°C
  • Thu
  • 30°C
  • 16°C
  • Fri
  • 29°C
  • 14°C
  • Sun
  • 29°C
  • 6°C
  • Mon
  • 31°C
  • 8°C
  • Tue
  • 32°C
  • 12°C
  • Wed
  • 33°C
  • 13°C
  • Thu
  • 31°C
  • 15°C
  • Fri
  • 30°C
  • 14°C
  • Sun
  • 22°C
  • 17°C
  • Mon
  • 25°C
  • 16°C
  • Tue
  • 24°C
  • 18°C
  • Wed
  • 24°C
  • 18°C
  • Thu
  • 20°C
  • 18°C
  • Fri
  • 25°C
  • 19°C
  • Sun
  • 21°C
  • 12°C
  • Mon
  • 20°C
  • 14°C
  • Tue
  • 20°C
  • 13°C
  • Wed
  • 20°C
  • 16°C
  • Thu
  • 22°C
  • 16°C
  • Fri
  • 24°C
  • 16°C
  • Sun
  • 21°C
  • 10°C
  • Mon
  • 21°C
  • 12°C
  • Tue
  • 25°C
  • 11°C
  • Wed
  • 28°C
  • 13°C
  • Thu
  • 34°C
  • 15°C
  • Fri
  • 20°C
  • 13°C
  • Sun
  • 19°C
  • 12°C
  • Mon
  • 19°C
  • 13°C
  • Tue
  • 22°C
  • 13°C
  • Wed
  • 25°C
  • 14°C
  • Thu
  • 32°C
  • 16°C
  • Fri
  • 19°C
  • 13°C
  • Sun
  • 30°C
  • 11°C
  • Mon
  • 31°C
  • 14°C
  • Tue
  • 33°C
  • 14°C
  • Wed
  • 34°C
  • 15°C
  • Thu
  • 32°C
  • 16°C
  • Fri
  • 30°C
  • 15°C
  • Sun
  • 27°C
  • 7°C
  • Mon
  • 30°C
  • 9°C
  • Tue
  • 32°C
  • 12°C
  • Wed
  • 33°C
  • 15°C
  • Thu
  • 32°C
  • 15°C
  • Fri
  • 31°C
  • 16°C
  • Sun
  • 22°C
  • 14°C
  • Mon
  • 26°C
  • 12°C
  • Tue
  • 30°C
  • 12°C
  • Wed
  • 32°C
  • 13°C
  • Thu
  • 23°C
  • 16°C
  • Fri
  • 25°C
  • 15°C
  • Sun
  • 22°C
  • 10°C
  • Mon
  • 20°C
  • 12°C
  • Tue
  • 20°C
  • 11°C
  • Wed
  • 21°C
  • 14°C
  • Thu
  • 25°C
  • 13°C
  • Fri
  • 24°C
  • 14°C

Consumers urged to be cautious with Black Friday spending

With interest rates going up, consumers already hit by the high value-added tax, fuel prices and utility tariffs, will feel the pinch.

Picture: Supplied

CAPE TOWN - Consumers might want to go easy on Black Friday spending, especially if you're buying on credit.

On Thursday, Reserve Bank Governor Lesetja Kganyago announced a hike of 25 basis points in the repo rate, increasing it from 6.5% to 6.75%.

With interest rates going up, consumers, already hit by the high value-added tax, fuel prices and utility tariffs, will feel the pinch.

Economist Thabi Leoka says Kganyago's announcement has put him in the same box as the Grinch who stole Christmas.

"The cost of borrowing will be higher, the cost of servicing debt will be higher. It's happening at a time when consumers typically spend money for Christmas and also spend money for schools and school fees after Christmas. So the timing of it is not good."

Meanwhile, economist Isaac Mathekgo says the decision just adds to the woes of people who are struggling to repay debt.

"Consumers have been grappling with a number of higher costs, for instance, electricity tariffs are higher. We've seen shopping increases and fuel prices since about April, so this will add to pressures on the consumer."

WATCH: Black Friday frenzy as stores open at midnight

(Edited by Mihlali Ntsabo)

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus