USA Fed is reported to want to hike interest x4 times this year
When USA sneezes, rest of world catches the flu, at worst catches COVID. If it happens that USA Fed raises interests x4 times this year, SA will no longer be a global choice for interests bearing investments.SA reserve bank will also in turn keep raising interest also x4 times this year so that we remain competitive global choice for investors.
If you are retired or have cash invested or saved
Your nest egg will grow more
If you have debt
It will cost you more to pay off debt
It is possible total increase in interests will be 2.5 percent by mid 2023 and that will hurt for those who are in debt. Credit card debt and personal loan will be very expensive.
This is time to pay off debts or pay more into your bond as you may have bought it whilst interests were rock bottom, that's gonna change and you may not afford the instalment of your bond if your income stay same
The DNI solution to high interests rates
.pay off high interest debts asap
.lnvest in growing assets
Am not a certified financial advisor, am just trying to be streetwise and am loving it