People with debt can expect to pay more on their interest as most economists believe the Reserve Bank will hike the repo rate by 50 basis points today, which will push the interest rate to above 8%. The rate hike comes amid higher inflation expectations for the rest of the year, brought on by higher food and fuel prices. Yesterday, Stats SA announced headline inflation was 5.9% in April, slightly below the expectation that it would breach 6%. FNB Economist Koketso Mano says it remains to be seen how the government will cushion the inflation blow for consumers.
How will government cushion the inflation blow for customers: interest rates rise