A new survey indicates that nearly half of South African consumers would face severe financial distress if the South African Reserve Bank (SARB) were to implement another interest rate increase.
The data suggests that many households have exhausted their capacity to absorb additional financial shocks following last month's 25 basis point hike.
The findings highlight a growing vulnerability in the consumer sector, where limited fiscal buffers leave families exposed to further monetary tightening.
As inflationary pressures persist, the central bank faces a difficult balancing act between curbing price growth and avoiding widespread economic hardship.
This consumer fragility adds complexity to the SARB's policy outlook.
While global peers like the Reserve Bank of Australia have continued to raise rates to combat stubborn inflation, South Africa's domestic landscape shows signs of reaching a breaking point.