By: Bright Ntuli
The Congress of South African Trade Unions is urging the South African Reserve Bank to cut the repo rate to provide breathing space to millions of workers battling to cope with the rising costs of living.
Following the start of the local rate-cutting cycle in September 2024, the Reserve Bank has cut rates by a cumulative 125 basis points, reducing the repo rate from 8.25 % before the cycle to 7%.
Cosatu’s Matthew Parks says that the Monetary Policy Committee must further slash the repo rate by at least 50 basis points.
“Workers are literally under siege from electricity and fuel price which have risen far above inflation. Their wages have not kept pace with these increases. Workers are supporting relatives who cannot find jobs in an economy stumbling along on average 1% annual growth and battling a 42.9% unemployment rate,” says Parks.
