Home

‘Lower-to-middle-income workers likely to be the hardest hit by interest rate hikes’

Reading Time: < 1 minute

The Non-Governmental Organization, Alternative Information and Development Centre, says lower-to-middle-income workers are likely to be the hardest hit by the most recent interest rate hikes.

Last week, the South African Reserve Bank (SARB) hiked rates by 50 basis points, bringing the lending rate to 7.7 5%.

This is the 9th rate increase since November 2021.


The centre says the decision will further pull down the South African working class that is already struggling to survive.

The Centre’s economics researcher Dick Forslund, “Everybody, through the central bank of the US, will follow suit and increase the internal bank rates, the repo rate of 25 basis points or a quarter of a percent, but they doubled that. I know also that the Monetary Policy Committee, they didn’t agree on this decision. It was not unanimous. If they do it like this, they will make the recession permanent this year.”

Author

MOST READ