Local, international factors to influence Reserve Bank’s MPC’s rates decision: Economist

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Economist Xhanti Payi says local and international factors will influence the South African Reserve Bank’s Monetary Policy Committee’s rates decision this week.

On Thursday, the committee will announce its decision on interest rates following its 50 basis points increase in its meeting in May.

A series of rates hikes have taken the repo rate to 8.25% and the prime lending rate to 11.75%.

Payi explains what can expect in these tough economic times.

“What we’ll be looking at for this coming interest rate – what we’re looking at is a number of …. [things] 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,” adds Payi.