Brace yourselves, interest rate hikes are coming
Analysts say borrowers can expect between three and five 25-basis-point increases in the repo rate in 2022
16 January 2022 - 16:46
SA’s financial market gurus are warning that consumers should brace themselves for higher interest rates this year amid accelerating global inflation, which could put pressure on local prices thanks to a rand that may slide to R17/$ by year-end.
With US inflation having hit an almost 40-year high of 7% in December, banks including Goldman Sachs and Morgan Stanley are predicting at least four 25-basis-point rate hikes in the US in 2022. Analysts say that will pile pressure on the SA Reserve Bank to lift its rates to preserve the yield advantage of rand-denominated assets...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.