Economist Xhanti Payi has urged consumers to get good financial advice in tough economic times and tight interest rates.
This comes ahead of a looming rate decision by the central bank this week.
The South African Reserve Bank’s Monetary Policy Committee (MPC) will this Thursday announce its decision on interest rates following its 50 basis points increase at its May meeting.
A series of rates hikes have brought the repo rate to 8.25% and the prime lending rate to 11.75%.
Payi says local and international economic factors will influence the decision this week.
“What we’ll be looking at for this coming interest rate, what we’re looking at is a number of this that will be passed for both local and international factors, and we talk about tightening belts. I think the belts are really tight. They’re probably now in your vertebrae. What is important is to get good advice and engage creditors, because I think one thing that’s important is that you might have opportunities there to salvage some situation before things get worse.”
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