The Reserve Bank is likely to slow repo rate hikes now that we have reached pre-pandemic levels

The Reserve Bank raised the repo rate by 75 basis points for the second time, in line with a similar increase by the US Fed, which brings the rate close to pre-pandemic levels. This means that the repo rate will now be at 6.25% and the primary interest rate at 9.75%. Consumers will now pay more for credit and consumers with, for example, a home loan of R1 million with a repayment term of 20 years (at 0 future value), who are currently paying around R9,000 per month at prime. , now they will see their payments increase to R9 500. Those with …