Sarb decision not to hike repo rate welcomed as relief for SA’s working class
The central bank left the repo rate unchanged at 8.25%, providing much-needed relief to consumers paying off large loans.
JOHANNESBURG - The South African Reserve Bank (Sarb)'s decision not to hike interest rates has been welcomed as much-needed relief for the country's working class.
The central bank left the repo rate unchanged at 8.25%, after hiking rates for 10 consecutive times.
While the bank said this was not the end of its hiking cycle, economists believe this is an indication of cooler conditions in the future.
Economist Dale McKinley said Sarb's decision will bring relief to debtors paying off large loans because they won't be paying more.
He said this should be a step towards a more fiscal policy that allows money to move around.
"The policies by the reserve bank right now, while they may be welcomed by businesses, and middle and upper-middle classes, they do nothing for poor people in the country."
At the same time, auditing firm Mazars said Sarb's decision might be an indication that inflation reached its peak, with better conditions expected in the future.