More ‘punishment’ on the way for households in South Africa 

South African households are already burdened by high costs and cannot afford another interest rate hike, according to Samuel Seeff, Chairman of the Seeff Property Group.  

He urged the South African Reserve Bank to consider keeping the repo rate unchanged at 8.25% to alleviate the financial strain on consumers. However, economists are divided on the outcome of the rate hike decision, with some predicting a pause and others expecting a hike of 25 basis points.  

The rate hikes and other economic pressures have led to increased defaults among middle-class and affluent households, with a significant portion of monthly income going towards debt repayments.  

Another rate hike would worsen the situation for homeowners and could force some to sell and downsize. 

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