25 is today’s Number of the Day.
The South African Reserve Bank has raised interest rates by 25 basis points, taking the repo rate to 7.00% and lifting the prime lending rate to 10.50%.
Francis Herd and Melissa Tighy look at what that means for South Africans already carrying debt.
The increase may sound small, but the pressure builds quickly. Melissa explains how 25 basis points can add roughly R160 a month to a R1 million bond. On its own, that may not sound like a household crisis. But when fuel, diesel, meat prices, car repayments and credit card debt are also rising, the real story becomes cumulative.
The discussion also looks at why the Reserve Bank is moving now. Inflation remains the bigger threat, because it eats away at spending power while salaries struggle to keep up.
For consumers, the message is uncomfortable: relief has not arrived yet.
25 basis points is a small number with a much bigger monthly echo.
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