According to economist and Wits senior lecturer, Lumkile Mondi, the middle class will be the hardest hit by the interest rate hikes after the anouncement of the repo rate being raised by 50 basis points.
702's Xolani Gwala spoke to economist, Lumkile Mondi, and finance journalist, Maya Fischer-French, about what the recent news means.
Listen to the interview below:
Corporates who are under distress will have to lean heavily on their shareholders to help them in the face of the global economic challenges.— Lumkile Mondi, Wits senior lecturer and economist
The middle class is going to be hit very hard because they drive consumption, borrowing and the growth of the economy. The middle class is going to be paying more and getting deeper into debt.— Lumkile Mondi, Wits senior lecturer and economist
It is incredibly important to understand where the middle class in South Africa stands, especially as we head up into the national budget.— Maya Fischer-French, finance journalist
The middle class are the people who are going to be squeezed... Since 2014, we've already seen an increase of 175 basis points.— Maya Fischer-French, financial journalist