Home loans: Impact of interest rate hike

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South Africa Headlines News

The latest interest rate increase brings to an end a remarkable run of six consecutive reductions since November 2019, when it dropped from 10% to 9.75%.

The prime lending rate, being at a historical low, saw all borrowers benefiting by reducing the cost of servicing the interest charge linked to their loans.

In recent years, the South African economy has been through a lot; from credit rating agency downgrades, the global recession and the unprecedented impact of a global pandemic. These are some of the factors that contributed to the reasons why the South African Reserve Bank chose to reduce rates over a prolonged period.

 

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