The Savings Institute says another interest rate hike will plunge South Africa into an economic recession.
On Thursday, the Reserve Bank hiked interest rates by 50 basis points taking the prime lending rate from 11.25% to 11.75%.
This marked the 10th increase, since November 2021, totalling 475 basis points over the period.
The Institute’s Gerald Mwandiambia says homeowners in particular will be the hardest hit.
“Speak to your financial institution, look at getting and extension on the term. This will reduce your home loan payments and remember this is last resort. Also look at spaces in your home that could generate income. Try and get a tenant. Salaries are not going up as much as inflation and the cost of living. Most of us are living on 50% of what we were earning in 2018 but servicing the same bills. Anything more than this will lead to an economic recession.”
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