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In this edition of the Business Day Spotlight, we explore how rising interest rates directly affect consumer finances.
Our host Mudiwa Gavaza is joined by Thabani Ndwandwe, chief risk officer at Standard Bank SA.
The SA Reserve Bank (SARB) kept the repo rate unchanged this week at 8.75%.
Ndwandwe says the interest rate hiking cycle which started in late 2021 has had a huge effect on consumer pockets. For example, a bond on a house that once stood at R20,000 is now at R28,000.
He explains that the rise in borrowing costs has happened at a faster rate than incomes for South Africans, which according to the bank’s data are up about 6% on average.
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