COSATU, SAFTU disappointed with MPC's decision to keep repo rate unchanged
The repo rate has been at 8.25% for more than a year now and remains at a 15-year high.
A YouTube screengrab of SA Reserve Bank Governor Lesetja Kganyago delivering the Monetary Policy Committee’s January statement on 25 January 2024.
CAPE TOWN - Some trade union federations say they're disappointed that the South African Reserve Bank has kept the repo rate unchanged at 8.25%.
The repo rate has been at 8.25% for more than a year now and remains at a 15-year high.
The prime rate, which is the interest rate that commercial banks charge their clients for loans, also remains at 11.75%.
COSATU's Matthew Parks said that the reserve bank had failed to take the opportunity to give relief to millions of workers who are struggling to cope with rising costs.
"We had hoped the reserve bank would have reduced the repo rate and give some comfort to millions of workers who are just drowning in debt, and they would also be useful and a positive injection to the economy, which is really stagnant and growing at 1%, and we are struggling to create jobs, as we have about 42% unemployment rate."
SAFTU spokesperson, Trevor Shaku, said that they were also not pleased with the decision.
"We have argued since the South African Reserve Bank started its rate-hiking trajectory, that high interest rates are not conducive for a good economic growth because they attack the most important layer of the economy which is the consumers."