High interest rates impact negatively on households

JOHANNESBURG - South African households remain under pressure mainly due to higher interest rates. 

That's according to the results of the most recent Altron FinTech Household Resilience Index.

The higher interest rates have forced households to sacrifice 10 percent of their disposable incomes to pay debt costs. 

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That's a 34 percent increase from 2021. 

Dr Roelof Botha says the higher SARB repo rate has pushed up the cost of credit and working capital, which negatively impacts the financial disposition of households and businesses across the country. 

He says the economy cannot grow at sustained high levels unless there is growth in household credit extension.