South Africans are set to feel the financial squeeze once again after the South African Reserve Bank (SARB) announced a 25 basis points increase in interest rates on Thursday.
The decision, announced by SARB Governor Lesetja Kganyago, is aimed at curbing inflation and stabilising the economy amid ongoing economic pressures.
The hike means consumers with home loans, vehicle finance, credit cards, and other forms of debt can expect higher monthly repayments in the coming months.
The move comes amid growing inflation risks linked to persistently high oil prices and the ongoing conflict in the Middle East, which have driven up fuel costs and heightened concerns about broader price pressures feeding through the economy.
Economists warn the latest increase could place further strain on consumers and businesses already struggling in a tough economic climate, as many households continue to battle rising food prices, transport costs, and unemployment challenges.
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