Repo rate hike ‘a positive development’ - economist
Updated | By Steve Bhengu
An economist says while an upward adjustment of the repo rate might be difficult news to digest, it could work in our favour in the long run.
![If you had to list things you spend money on that you know is a complete waste of money, what would it be?](https://turntable.kagiso.io/images/towfiqu-barbhuiya-3aGZ7a97qwA-unsplash.width-800.jpg)
The SA Reserve Bank on Thursday announced the repo rate would be hiked to 3.75%.
The prime lending rate will inch up to 7.25%.
“By increasing the rate sooner, fewer interest rates will be required. I think the Reserve Bank did the right thing.
“What's likely to happen now, is that it will have a negative impact on for example, the consumption expenditure and the economy, generally speaking, but the positive of this is that inflation expectations will be addressed and that in the long term is good for the economy.”
![Listen to more local news below Jacaranda](https://turntable.kagiso.io/images/Listen_to_more_news_Jac_3.original.png)
Show's Stories
-
LISTEN: Karen Zoid reveals whether Afrikaners are still 'plesierig'
Karen Zoid is a legendary South African performer and a household name.
The Drive with Rob & Roz 8 hours ago -
LISTEN: Recipe for the official Drive mocktail!
This is what the Drive with Rob and Roz team taste like!
The Drive with Rob & Roz 10 hours ago