Wed May 22 11:08:59 SAST 2013

'Lower rates will increase debt'

Sep 18, 2012 | Mpho Sibanyoni | 7 comments

ECONOMISTS have warned that cutting interest rates could result in the economy over-heating and household debt spiralling out of control.

Comments

Wed May 22 11:08:59 SAST 2013 ::
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Sep 18, 2012

Vhamsanda

I know that the government want to be seen to care for the poor. Lowering ridiculously could increase the already volatile household debt. Lower rates could also harm investments as investors see very little on their ROI.
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Sep 18, 2012

ndhandhazi

Big No!!! lowering interst will all South African. You want us to continue paying high instalments for low quality products and inflated loans. It seems you are a millionair.
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Sep 18, 2012

ndhandhazi

Biggest NOOOO! Lowering intests rate will help all south african's.
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Sep 18, 2012

Limpopoist

Seems too tricky ,lowering will not help becouse of CPI, seems like we are been screwed both way moos...
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Sep 18, 2012

Jenani

Lowering interest rates will cost a lot of jobs, pensioners like myself who live on interest have to make cuts somewhere as prices of everything are rising and cuts have to be made somewhere. The only option left to me if interest rates go down is to get rid of the help. My income has gone down by over 50% but my expenses keep rising rates, electricity and petrol. I live in a rural area and a car is a necessity not a luxury as there is no public transport. I have saaved all my life for a comfortable retirement which is fast disappearing. The interest on my savings does not even keep up with inflation. There is absolutely no incentive to save anything at all.
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Sep 19, 2012

CheeseBoy

the repo rate is 5 percent, the banks prime rate is 8.5 percent

people do you not see something wrong with that picture???

this means even if banks do not charge interest to us for loans they would still make a killing.

these banks are robbing me and you, the South African citizen more than the govt.
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Sep 19, 2012

CheeseBoy

The prime rate should be pegged by Govt to be no more than 1 % above the repo rate. who came up with that 3 percent difference?
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