On Thursday afternoon, SA Reserve Bank’s monetary policy committee (MPC) announced the hiked repo rate by another 25 basis points to 4.25%, and the prime rate to 7.75%.
The increase is largely caused by the “skyrocketing oil prices, which resulted in petrol and diesel prices rising by more than one-third over the past year.”
Furthermore, the invasion of Ukraine has resulted in significant rises in commodities prices, such as wheat and cooking oil. Inflationary pressures will rise in South Africa in the coming months as a result of this.
What does the rate hike mean for you?
Well, according to News24, if you have a new home loan of R2 million at the prime rate, the monthly payment will increase by around R300 following the rate hike.
The Reserve Bank now forecasts headline inflation of 5.8% for this year, up from the earlier forecast of 4.9 percent. This increase is mostly due to increased food and gasoline costs.
Fortunately, it’s not all dark and gloomy. Experts are predicting a 2% growth in South Africa’s economy in 2022.
On a lighter note, the highly anticipated season 2 of Bridgerton premiers on Netflix today.
According to The South African, Lord Anthony Bridgerton (Jonathan Bailey), the eldest Bridgerton brother and Viscount, sets out to find a suitable marriage.
“Driven by his duty to uphold the family name, Anthony’s search for a debutante who meets his impossible standards seems ill-fated until Kate (Simone Ashley) and her younger sister Edwina (Charithra Chandran) Sharma arrive from India,” reads the synopsis of the show.”
Watch the trailer below:
Here are the top trending stories of the day.
Headline: Reserve Bank hikes interest rates again as inflation pressures grow – News24
Headline: It’s here! Netflix releases the official ‘Bridgerton’ season two trailer [watch] – The South African
Headline: FRIDAY BRIEFING | Quitting Time: Why is the DA mired in instability? – News24
Headline: Summer Walker Links With Cardi B and SZA in Video for Extended Version of “No Love” – Complex
Headline: Ukrainian flees with Bitcoin life savings on a USB – My Broadband
Headline: Nedbank Cup quarterfinal dates and venues confirmed – Times Live
Headline: Kaizer Chiefs ‘shocked’ as PSL to review arbitration ruling in High Court – Sport24
Headline: Russia will emerge weaker from Ukraine conflict, says Pentagon official — DW
Image credit: Neflix
