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
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...