Consumers should brace themselves as economists have predicted another interest rate hike to be announced by the Monetary Policy Committee (MPC) when it meets on Thursday.
Economists have listed high inflation, the weak rand and the energy crisis as among the reasons for the expected hike in the rate.
Bonke Dumisa, an independent economic analyst, said he expected an increase of 25 basis points.
“The SARB will increase the interest rate if inflation targets of 3% to 6% are not achieved.
“The inflation rate is hovering around 7% and I can’t see a significant change in it any time soon, which will most likely mean an increase in the interest rate this week.”
Dumisa said he did not expect to see any decreases in the interest rate this year due to the struggling economy and the power crisis.
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