After the interest rate increase last week, the Governor of the Reserve Bank, Tito Mboweni, came out yesterday and said that if people do not “feel the pinch in their pockets” they will not respond appropriately. He further stated that raising the repo rate last week was what the Reserve Bank thought was “good for the country”

Not too many people in South Africa right now are happy with the increase in interest rates and do not think that it is good for the country, but should one tend to listen to what the Governor is saying and have faith with him in that he knows what is best for the country? For the short term, the consumers of South Africa maybe feeling the pinch of the increase in interest rates as their home loan repayment, car loan repayments and other loan repayments will have increased now, but maybe in the long term the consumers will be thankful for this stage as conditions in the future may now become become better, and interest rates will be lower together with inflation. The Governor also then went on to say that he wished to see T-shirts one day that said “Viva interest rates, Viva!”

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