Economist Says The Hike In Repo Rate Will Hit New Homeowners Hard

By: Zilungile Mkhize

Economists say the Reserve Bank’s Monetary Policy Committee has returned interest rates back to pre-pandemic levels after the bank hiked rates by 75 basis points, for a second meeting in a row.

The move brings the repo rate to 6.25%, while the prime rate now sits at 9.75%.

CEO of BetterBond, Carl Coetzee, says this will hit new homeowners hard, adding that on a home loan of R2 million, the latest hike means a monthly installment goes up by more than R970.

The rate hike is in line with what economists had predicted.

However,  Coetze says the latest increase does not make it impossible to afford a home.