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Geopolitical tensions, the near-collapse of Transnet, job cuts in the mining industry and high interest rates are all having a massive impact on households. Lumkile Mondi writes that, instead of splurging this festive season, consumers should be tightening their belts even if interest rate cuts are on the horizon.
The SA Reserve Bank noting the high level of uncertainty in the long-term outlook kept the repo rate at 8.25% recently.
Some analysts were disappointed with the decision since interest rates have peaked. Others believed that a cut would boost demand as household consumption expenditure has been falling, and that it would support the lacklustre economic growth.
