SAFTU urges SARB to ease interest rates on back of latest inflation figures
The central bank's monetary policy committee is set to meet in September to deliberate on the country's policy rates, which 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.
JOHANNESBURG - The South African Federation of Trade Unions (SAFTU) is calling on the South African Reserve Bank (SARB) to reduce interest rates after inflation eased to a three-year low.
The central bank's monetary policy committee is set to meet in September to deliberate on the country's policy rates, which remains at a 15-year-high.
On Wednesday, Stats SA announced that the annual consumer price inflation decreased to 4.6% for July from June's 5.1%.
The reserve bank has left the interest rate unchanged at 8.25% and the prime lending rate at 11.75%, with the MPC citing high inflation.
However, SAFTU's Trevor Shaku said: "In its speech, the MPC argues that it is keeping the rates up because of high inflation. Based on the sentiment and expectations of inflation, the SARB anchors its policy rates. Now that inflation has consistently been well within the target range of 3 to 6%, the SARB has no justification to strangulate the economy by keeping the interest rates high."