Debt Rescue COO Annaline van der Poel argues that the recent 25 basis point interest rate cut by the South African Reserve Banks Monetary Policy Committee is not enough for heavily indebted consumers.
The Bank slashes interest rates for the first time in 4 years. The decision takes the repo rate to 8% and the prime lending rate to 11%.
Analysts believe this marks the first rate cut since the banks rate hiking cycle which began in 2021, giving marginal relief to economically constrained consumers.
Van der Poel elaborates, "For the average consumer it might be a few 100 rands back in their pockets, depending on the kind of data exposure they have, but is it enough? No, I mean they are struggling severely financially to actually literally put food on the table.
This latest announcement comes at a time when consumers and households need some breathing room.
