'Rate hike was best way to go'
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Although a harsh one for consumers, an economist has welcomed the latest repo rate increase.
The Reserve Bank yesterday increased the repo rate by 25 basis points. This means the rate at which the Reserve Bank lends money to banks has risen to seven percent. The prime lending rate, the figure charged by banks to customers, will increase to 10.5 percent.
It comes amid tough economic times, and a possible downgrade by credit ratings agency Moody's.
Market analyst, John Loos, says the rate hike was the best way to go.
The Reserve Bank yesterday increased the repo rate by 25 basis points. This means the rate at which the Reserve Bank lends money to banks has risen to seven percent. The prime lending rate, the figure charged by banks to customers, will increase to 10.5 percent.
It comes amid tough economic times, and a possible downgrade by credit ratings agency Moody's.
Market analyst, John Loos, says the rate hike was the best way to go.
