South Africans were struggling under debt pressure, even before interest rates rose 75 basis points

South African consumers are worried about credit card balances, their ability to repay debts and savings account blitzes.

The South African Reserve Bank (SARB) raised interest rates in the country by 75 basis points on Thursday, the biggest increase for a single meeting of the Monetary Policy Committee (MPC) since 2002. Analysts forecast a More monster interest rate hikes later this year, especially since one of the MPC members already wanted a 100 basis point hike this week.

Ironically, the same week that the Reserve Bank shocked many consumers with the latest hike, four of South Africa’s credit bureaus and debt advisory firms released research showing how consumers were already under financial pressure.

Credit bureau TransUnion released the results of its second-quarter survey hours before Reserve Bank Governor Lesetja Kganyago took the podium. The TransUnion Consumer Pulse study looks at how household finances have changed on a quarterly basis and what changes they expect in the future.

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