Consumers encouraged to pay off their debt

By Jurina Nkwazi
20 Jurina 2011

Economist Merina Willemse is cautioning people not to overspend, but rather to settle outstanding debt.

As the Reserve Bank is expected to announce the repo rate later today consumers have been encouraged to pay off their debt while the interest rate is still at a low.

The repo rate is currently at 5-point-5-percent while the prime lending rate is nine-percent.

Willemse says they do not foresee a cut in the repo rate.

Meanwhile, The Democratic Alliance has also stated that it does not believe that the Reserve Bank will change the repo rate.

The DA’s Shadow Minister of Finance Dr Dion George sad, “There is a lot of inflation pressure in our economy especially with fuel, utility and food increases. Therefore we consideration must manage inflation.”

“Unless the economy is stimulated slightly there will be an increase of pressure in inflation,” he said.