Following March’s decision by the South African Reserve Bank’s Monetary Policy Committee (MPC), the latest data from TransUnion points to a consumer environment that remains fragile, with many households continuing to navigate mounting financial pressure.
While some improvement in repayment behaviour was observed toward the end of 2025, this stability is proving short-lived. Rising living costs, increasing reliance on credit and limited financial buffers mean that many consumers are entering 2026 in a vulnerable position, with little capacity to absorb additional economic shocks.
The decision to leave interest rates unchanged may offer a sense of short-term stability, but it does little to ease the underlying financial strain facing households.
“Stable rates do not translate into financial relief for most consumers,” said Fatgie Adams, Head of Credit Risk Solutions at TransUnion. “Many households are already under pressure and upcoming increases in fuel and food costs are likely to erode any temporary stability created by a hold decision.”
Insights from the TransUnion Q4 2025 Consumer Pulse Study show that households have already begun adjusting their behaviour in response to financial stress. More than half of consumers report cutting discretionary spending, while a significant portion have reduced clothing purchases, delayed major expenses and scaled back on services such as subscriptions and digital platforms. At the same time, the study indicates a growing reliance on credit, with a notable share of consumers using credit to manage shortfalls in their monthly budgets.
