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REPO RATE TO RISE AGAIN

The prime lending rate is expected to increase

Bonny Fourie | January 13, 2023

South African property owners will have to fork out more on their home loan
repayments at the end of this month as the repo rate looks set to increase
again.

Best-case scenario predictions are that the hike will be 0.25%, while worst-case
expectations are leaning towards a 0.75% increase.



This will push the current interest rate of 10.5% to between 10.75% and 11.25%.

The good news, though, is that FNB senior economist Koketso Mano expects the
upcoming increase to be the last in the current cycle.

“The Monetary Policy Committee will then evaluate the impact of monetary
tightening since November 2021, when the repo rate was at an historic low of
3.5%, and the prime lending rate at 7%.”



dailyvoice@inl.co.za



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