Interest rates increased by 75bps - biggest hike since 2002.
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The repo rate has been hiked by another 75 basis points on Thursday.
This brings the repo to 5.5% and the prime rate to 9%. Three members of the monetary policy committee supported the hike, while one wanted 100 basis points and another preferred a 50 basis point hike.
This is the biggest hike since September 2002, when the repo rate was hiked by 100 basis points amid an emerging market crisis. The latest interest rate hike follows a painful inflation number that was released on Wednesday: consumer inflation reached 7.4%, the highest level in 13 years.
On a new home loan of R2-million at the prime rate, the latest hike will increase payments by R950 a month. The monthly payment on that mortgage has now climbed by almost R3 000 since November last year.
This brings the repo to 5.5% and the prime rate to 9%. Three members of the monetary policy committee supported the hike, while one wanted 100 basis points and another preferred a 50 basis point hike.
This is the biggest hike since September 2002, when the repo rate was hiked by 100 basis points amid an emerging market crisis. The latest interest rate hike follows a painful inflation number that was released on Wednesday: consumer inflation reached 7.4%, the highest level in 13 years.
On a new home loan of R2-million at the prime rate, the latest hike will increase payments by R950 a month. The monthly payment on that mortgage has now climbed by almost R3 000 since November last year.
