Moun­tain of debt

Finweek English Edition - - Main stories this week -

WHAT HAP­PENED THOUGH SOUTH AFRICANS’ do­mes­tic debt has risen to its high­est level (73,75%) of dis­pos­able in­come ever, ac­cord­ing to the SA Re­serve Bank’s bul­letin for the last quar­ter of 2006, the Bank has de­cided to keep the repo rate un­changed at 9% for the time be­ing. Gov­er­nor Tito Mboweni said the Bank ex­pects the CPIX in­fla­tion rate could rise to around 5,9%, which is just inside the in­fla­tion tar­get, and will re­main there. BEELD said con­sumers are happy, but that a fur­ther rate in­crease may have been a good thing, be­cause there are no in­di­ca­tions of debt lev­els and credit ex­ten­sion fall­ing. The Cit­i­zen said many would merely feel their minds have been set at rest and sim­ply keep spend­ing. It’s un­healthy that more peo­ple in SA have credit than have jobs or sav­ings ac­counts, the pa­per re­ported.


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