INTEREST rates were hiked last week, and whilst people have heard it mentioned in the news, many people still don’t understand what it really means and how it affects their lives.
Here is a breakdown of how rising inflation and rising interest rates affect you, and specifically your debt.
n When inflation is high, interest rates are hiked. What is inflation?
When the price of goods and services like housing, clothing, food, transportation and fuel are increasing steadily, the economy is undergoing inflation. In practical terms, it means that the average consumer will have to spend more to get the same things they got before.
n What are interest rates now at, since the South African Reserve Bank’s (SARB’s) Monetary Policy Committee hiked it by 50 basis points…
