debtors get pressured by 3,25% interest rates increase compared to last year
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South African Reserve Bank’s (SARB’s) Monetary Policy Committee voted to hike interest rates in the country by 50 basis points on Thursday.

South African Reserve Bank’s (SARB’s) Monetary Policy Committee voted to hike interest rates in the country by 50 basis points on Thursday.

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This will take the repurchase rate to 8.25% and the the prime lending rate to 11.75%, effective Friday, 26 May.

The decision was reportedly unanimous.

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The latest rate hike brings the total increase to 475 basis points since November 2021.

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On a new home loan of R2 million at ‘prime’, the latest increase hikes the monthly instalment by R689.

Since November 2021, monthly payments on a R2 million home loan are now almost R6 189 more expensive.

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Rates are at their highest point in nearly 14 years – since June 2009 – when the fallout from the global financial crisis weighed on the local currency.

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More to follow …

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