Massive interest rate pain for South Africa: [an extract from an article by: Staff Writer – BUSINESSTECH – 16 October 2024]
The latest Altron FinTech Household Resilience Index shows that South African households continue to suffer under high interest rates, which have pushed up the burden of debt costs to 15-year highs and removed around R43 billion from the economy.
This comes despite the South African Reserve Bank’s latest move to cut rates by 25 basis points – a move that will likely only be reflected in the economy in 2025.
According to economist Dr Roelof Botha, who compiles the index on behalf of Altron FinTech, the SARB’s restrictive monetary policy has hurt the economy greatly.
“One of the most worrying trends in the latest AFHRI is the year-on-year decline of 3.3% in the ratio of household income to debt costs….
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