Although we all watch the increases and decreases in the repo rate with eagle eyes, few consumers know that the rate of interest on their personal loans must be within legal limits.
Despite the relief of no VAT increase and an inflation rate below the South African Reserve Bank’s target range, many South African consumers still rely on credit to get through the month.
Unfortunately, the South African Reserve Bank (Sarb) expects inflation to tick up to an average of 3.6% in 2025 and continue increasing to 4.5% in 2026. This, combined with global uncertainty, means the Sarb is unlikely to make any further rate cuts, Benay Sager, chairman of the National Debt Counsellors’ Association, says.
Read the full article in The Citizen.