The country's banks will be increasing their prime lending rates following Thursday's interest rate hike.
The Reserve Bank announced 25 basis points increase in interest rates, sparking concern that it will hit consumers hard.
FNB said in response that the rate hike would provide more domestic pricing stability and said their would be benefits for consumers in coming months.
However, FNB said the immediate impact of increased loan payments will, however, place pressure on consumer confidence.
Property giant, Pam Golding, said the rate hike was ill-timed.
Group Chief Executive, Dr Andrew Golding, said with inflation within the target range and a sluggish economy struggling to regain impetus and while the country experiences the worst drought in decade, "the Monetary Policy Committee's decision to further increase the repo rate by another 25 basis points is ill-timed."
Golding said "that a stable rate would have helped boost business and consumer confidence at a time when it is needed most."
He said a stable repo rate would have sent a positive signal to South Africa's housing market, which despite ongoing economic headwinds, continues to experience sustained demand which in many key nodes and metros exceeds the supply, resulting in ongoing stock shortages.
Trade union federation Cosatu said it "condemns the reckless decision by South African Reserve Bank's Monetary Policy Committee to increase the interest rates by 0,25 % given the weak economy and low inflation."
"This will hurt the workers by reducing whatever little money they have. The workers in this country are already struggling with the escalating prices of energy, food, transport, education and healthcare," said Sizwe Pamla, Cosatu's national spokesperson.
He said the interest rate hike would result in more home repossessions and also defeats the aims and goals of the recently introduced maximum interest's rate for all types of credit agreements.
"The Reserve Bank has increased the interest rate out of fear that the inflation might increase and because of the Rand's depreciation. Inflation is steady and at 4.7% well below the 6% target limit. The Rand has depreciated because the US economy is growing and its unemployment rate is falling," Pamla said.
By this decision the Reserve Bank has thus decided to punish working and middle class South Africans, who are already battling to make ends meet, Pamla added.
Economist, Andre' Mellet, also weighed in saying the rate increase was "ill-timed and baffling."
He said the increase was a worrying sign because the economy’s growth had been sluggish as of late, adding that "the increase was also puzzling based on the fact that inflation had been relatively stable."
