The South African Reserve Bank (SARB) has announced a 50 basis point hike, taking the current prime lending rate from 10.75% to 11.25%.
This recent hike marks the ninth rate hike since the current hike cycle started in November 2021, totalling 425 basis points over the period.
Rates are now at their highest point in 13 years (June 2009), when the fallout from the global financial crisis weighed on the local currency.
The rate hike was higher than market expectations, with most economists and analysts anticipating a 25bp hike.
Seeff expects business as usual for now, noting that the monthly transfers are still slightly ahead of the pre-pandemic levels.
