BL Premium writes that consumers should brace themselves for an increase in interest rates this week — the second hike this year — as the war in Ukraine threatens higher fuel prices and rising inflation.

South Africans should prepare for a 0.25% basis point increase, with more likely to follow. Experts expect the SA Reserve Bank to raise rates another three or four times in 2022 should inflation fail to cool. Higher rates mean higher monthly payments for cash-strapped consumers, who also face a record petrol price rise next month. They will also be paying more for cars, houses and credit cards. The increase is likely to further dampen confidence in the economy. Motorists are likely to pay a projected R24 a litre for petrol and R23.60 for diesel next month as a direct result of the war in Ukraine, which will also hurt the economy. Reports emerged last week that the government was considering measures to shield consumers, including the suspension of taxes and the fuel levy, which represent 30% of the pump price. “Increased debt costs converging with higher costs of food, transport and electricity are going to weigh on consumers and we expect that it will be a difficult next few months for them,” said Nolan Wapenaar of Anchor Capital.

• Read the full original of the report in the above regard by Dineo Faku at BusinessLive (subscriber access only)

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