governor of a spare bank, lesetja kaganyagoon Thursday increased the repo rate by someone else 75 basis points A blow to the wallets of the already distressed South Africans.
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The final step, effective Friday, November 25, will lower the repo rate 7% and prime lending rate 10.5%,
three Committee members preferred the announced rate, while others Two opted for an increase of 50 basis points.
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The increase is the third straight upward revision of 75 basis points.
“High inflation and weak economic growth, along with monetary and fiscal policy responses, continue to shape global conditions. Russia’s war in Ukraine continues, trade is deteriorating and prices of a wide range of energy, food and other commodities are rising. said Kaganyago.
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What does the latest increase mean for people with monthly growth? very concerned to make repayments?
on home loan R1 million At the prime rate (10.5%), the last increment will increase payments € 499 per monthwhile one R2 million bond with outstanding current charges R998 more every month.
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The table below shows both ‘old’ and ‘new’ monthly bond redemptions against various outstanding bond values (assuming your redemption is principal):
|bond price (20 years)||Old monthly costs (9.75%)||New monthly fees (10.5%)||Change|
|R750 000||R7 113||R7 488||+375€|
|€800,000||R7 588||R7 987||+399€|
|R850 000||R 8 062||R8 486||+R424|
|900 000||R8 536||R8 985||+R448|
|R950 000||R9 010||R9 485||+R474|
|R 1 000 000||R9 485||R9 984||+499€|
|R 1 500 000||R 14 227||R 14 976||+R748|
|R 2 000 000||R 18 970||R 19 968||+R998|
|R 2 500 000||R 23 712||R 24 960||+R1 247|
|R3 000 000||R 28 455||R 29 951||+R1 495|
|R3 500 000||R33 198||R34 943||+R1 745|
|R4 000 000||€37,940||R39 935||+R1 994|
|R4 500 000||R 42 683||R44 927||+R2 244|
|R 5 000 000||R 47 425||R 49 919||+R2 493|
The MPC decided to raise the repo rate by 75 basis points to 7% effective November 25, 2022. Three members of the committee favored the announced increase. Two members favored a 50 basis point increase. #SARBMPCNOV22 pic.twitter.com/veKZ8VVsQJ
– SA Reserve Bank (@SAReserveBank) November 24, 2022