Do you think the interest rate will go up much further?

Question

I can still remember when it went up to 25% (I think) in 1997 or 98. A friend of mine went under because he could no longer afford his mortgage repayments. I went to my bank and arranged for a fixed rate on my home loan - 14.09%. Was this a silly thing to do? Thing is, every day there are new rumours - the rate will soon go down, will stay the same, will skyrocket. I am barely making the bond repayments as it is. Any economists out there who can shed some light?

Answer 1

I think you did the right thing, I heard it is going to go up in August and then once again this year, for the next 18 months the economy looks very bleak. I have good sources. We do not have a bond, otherwise I would also have fixed it.

Answer 2

Don't rely much on the economists. They mostly differ on this matter. They also differ whether it's a good thing that the interest rate keeps going up to fight inflation.

I believe - just from emotional point of view - that Mboweni is going to be lenient this time around.