COPING WITH A HIGHER INTEREST RATE

Last week, SA Reserve Bank Governor Lesetja Kganyago announced that the repo rate would increase by 25 basis points, from 4% to 4.25%. Darryl Adriaanzen, African Bank Group Executive: Operations, says that while the increase was inevitable, it comes on the back of increased inflation, which is already negatively impacting many cash strapped and debt-strapped South Africans. He says the effects will, however, largely be limited to highticket, longer-term finance with variable rates, such as vehicle finance and home loans.