Banking website www.justmoney.co.za has warned consumers to lock up their wallets and not embark on a spending spree in celebration of the SA Reserve Bank's decision on Thursday to leave the repo rate unchanged.

"The interest rate freeze is good news, but it's just a respite - the economic uncertainty is not over yet.

"Hard pressed consumers should see the Reserve Bank's decision as a second chance for them to get their finances in order, not a sign that things are on the up and they can start spending again," said Paul Beadle, managing director of www.justmoney.co.za.

There had been enormous pressure on governor Tito Mboweni not to put up interest rates again for fear that it would push even more people over the edge into over-indebtedness and insolvency, Beadle said.

But the warning signs still remained, with the banks giving hints that it was suffering a growing number of defaulting loans.

"So we really are not out of the woods yet, particularly as house prices are continuing to stall and food and energy costs are still up, despite the oil price fall."

Beadle added that consumers needed to focus on getting their finances under control, reducing their spending if possible and staying far away from debt – "because the next interest rate decision might not be so positive".

Sapa