COSATU notes the Reserve Bank’s decision to maintain the repo rate

27 March 2024

The Congress of South African Trade Unions (COSATU) notes the South African Reserve Bank (SARB)’s decision to maintain the repo rate.  With inflation having increased over the past few months to 5.6%, the decision not to increase the repo rate will provide comfort for millions of working-class families and an economy feeling the pinch of rising costs of living.

The Federation expects as inflation is projected to fall over the next few months, the SARB will move to lower the repo rate and giving badly needed relief to workers and a fragile economy.  It is critical that the SARB balance its mandate between managing and reducing inflation, which has a devastating effect on workers’ salaries and ability to take care of their families, and at the same avoids an painfully high repo rate that make loan repayments unaffordable to millions of workers and stifles economic growth.

Whilst there is little that government can do about the root causes of inflation, namely international oil prices that are frequently destabilised by wars far from South African shores, government needs to expedite the review of the fuel price regime to see where taxes can be reduced to give relief to consumers, commuters and the economy as well as to intensify support to Eskom to reduce its dependency on double digit electricity tariff hikes.  Further interventions are needed at Transnet Freight Rail and Metro Rail to protect food and commuters from fuel price hikes.

COSATU will continue to raise these critical matters with government at Nedlac and Parliament.

Issued by COSATU 

For further information please contact:
Matthew Parks
Acting National Spokesperson & Parliamentary Coordinator 
Cell: 082 785 068