INTEREST RATE INCREASE
Category Property News
The central bank of South Africa announced a 50 basis points hike in interest rates, bringing it to a 13-year high. As a result, the key rate will increase from 7.25% to 7.75%, while the prime lending rate, which commercial banks charge their clients when granting a loan, will rise from 10.75% to 11.25%.
This rate hike is believed to be driven by inflation, as per market experts. On 22 March 2023, Stats SA released the latest inflation figures, which indicated a slight increase in headline inflation to 7% (up from 6.9% in January), while core inflation accelerated to 5.2% (from 4.9%).
Author: Helen Melon Properties