The Independent Municipal and Allied Trade Union (IMATU) welcomes the decision of the Governor of the South African Reserve Bank (SARB), Lesetja Kganyago, to reduce the current repo rate from 7% to 6.75%.
“While we welcome the Monetary Policy Committee’s decision to reduce interest rates, this decision will not in and of itself stimulate growth or produce more jobs. Like all South Africans, our members are really feeling the financial pinch of increasing living costs and decreasing disposable income. Increased interest rates would put excessive and unaffordable pressure on workers,” explained IMATU General Secretary, Johan Koen.
Amidst the country’s rather bleak economic outlook, IMATU encourages its members to use this small financial reprieve to save and urges South Africa’s political principals to provide decisive leadership and policy certainty.