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Interest rate hike?

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Does anyone know when is the next interest rate hike?
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4 REPLIES 4
MichaelR
Regular Contributor
Wednesday 15hoo 1% that is tomorrow.
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theyoungster
Super Contributor
Why does increase in interest rate cause financials to decrease, yes i understand that it causes increase in defaulted loans ect...but surely higher interest bearing in SA attracts foreign investors, more bank charges on larger ammounts moving through bank accounts, banks are earning more interest off existing loans that dont default...or am i not seeing something?
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divz
Super Contributor
Agreed, but i think you also have to look at our currency and the risk of it weakening further. The rand is currently one of the worst performing currencies in the world and the risk of further weakening may be too high for foreigners to want to take.
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duke_vest
Frequent Contributor
1. low business confidence, 2. affordability. what does it help the banks when they make an extra 1% on 20% of the population who can afford it as opposed to say 70 or 80% who couldve afforded it when the interest rates were lower (figures are theoretical). anycase they gonna have to write off billions on mortgages that have gone belly up where bonds exceed the true current value of homes. this along with the current oil prices, xenophobic attacks, devaluating homes, etc, causes mass histeria in the market. now it has collapsed the entire bulding industry which has for the last couple of years fed millions of south africans and who knows what it's gonna take to get the wheel turning again. somebody correct me if i've missed the plot.
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