Mountain of debt
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.
WHAT OTHERS SAID