Timely interest rates reprieve after festive spending

Johannesburg; 25 January 2017 – The SARB’s decision to keep interest rates unchanged gives consumers a timely reprieve as many are likely to be recovering from festive season spending.

“Consumers should use this reprieve to get their finances in order ahead of the next Monetary Policy Committee review and the National Budget Speech which could see tax adjustments,” says Ester Ochse, Channel Head at FNB Financial Advisory.

“In an uncertain economic climate, building reasonable financial reserves is very important and consumers should take advantage of every opportunity to do exactly that,” she adds.

Ochse says consumers should pay attention to some of the following financial aspects:

·         Closely monitor your budget

·         Cut-back on unnecessary and excessive  spending

·         Limit exposure to debt

·         Pay-off debt as quickly as possible

·         Build-up savings or an investments portfolio

The SARB’s decision is an important catalyst for consumers that are committed to saving their way out of tough economic conditions. Last year, we saw a rate hiking cycle and interest rates haven’t been cut since, meaning those with savings will continue to earn a relatively high interest.

“Though the decision to hold interest rates will be welcomed, it’s important to note that South Africa is still in the midst of economic uncertainty. Our economy continues to struggle creating jobs and inflation remains outside the maximum target range. However this latest move helps consumers to have a firm grip of their financial affairs,” concludes Ochse.

@Fnb