Higher rates are a ‘golden opportunity’ for living annuity investors
SA’s highest benchmark interest rate in 14-years may be hurting the average consumer, but they are offering a lifeline for holders of living annuities also struggling with the rising cost of living.
The Reserve Bank has hiked its repo rate by 475 basis points (bps) in the past 19 months in an attempt to curb inflation and to support the currency, which has been undermined by foreigners pulling money from a local market faced with stagnant growth and constant power cuts. At the same time rising rates in the US, Europe and the UK have undermined the yield advantage of SA assets as foreigners are lured back to rising deposit rates in developed markers. ..
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