South African households hoping for relief from significantly lower interest rates are likely to be disappointed. That’s the view of The Common Sense’s Chief Economist, Bheki Mahlobo, who warns that the South African Reserve Bank has little room left to cut rates. “Consumers need to plan for interest rates to stay near current levels for longer,” Mahlobo advises. “The world has changed, and so must household strategies.”

Given global rate levels South Africa risks triggering currency weakness if it tries to cut further. “Any move to lower rates now could see the rand come under renewed pressure, driving up import costs and inflation,” Mahlobo says. For households, this means there is no quick fix from the Reserve Bank. The era of cheap credit bailouts for South African consumers is over.

Mahlobo suggests that the key for families is to focus on controlling debt and building savings, not waiting for another rate cut to bail them out. “If you’re making big purchases or taking on new debt, budget carefully and factor in the risk that borrowing costs stay high or even go up, but not significantly down,” he says.

The message is simple: hope is not a strategy. The Reserve Bank can do little more, so households must take charge of their own financial health. With limited rate relief in sight, now is the time to tighten up spending and focus on what you can control.