The Congress of South African Trade Unions (COSATU) welcomes the 25 basis points decrease in the repo rate to 7.75%.

However, COSATU is disappointed that the Reserve Bank’s Monetary Policy Committee was not bold enough to cut the rate by more than the 25 basis points, given inflation is the lowest it has been since June 2020 at 2.8%.

In fact, inflation has been within the Reserve Bank’s target of 3% to 6% since June 2023 and is now well below the target range. Consequently, the Federation expected a much more ambitious cut, given the need for monetary policy to stimulate employment.

We acknowledge that the cut in interest rates will provide a welcome relief to millions of workers who have been battling the rising costs of living.

Workers and their families have endured punishing interest rates since the Reserve Bank started hiking rates. This exacerbated workers already high levels of over-indebtedness, leading them to sacrifice on essentials such as healthy food, consequently their health is compromised. Another drop in interest rates at the beginning of 2025 will ease the pain for millions of workers who have been struggling to make ends meet.

The Federation also calls on government to revive the economy by providing extra support to Eskom, Transnet and Metro Rail as these entities are crucial for the optimal functioning of the economy, and in particular to end Eskom’s dependency on unaffordable double-digit tariff hikes. Government also needs to accelerate the review of the fuel price regime, reduce related taxes and zero rate key food items to provide relief to consumers, commuters and the economy.

Issued by COSATU

Zanele Sabela(COSATU National Spokesperson)

Mobile: 079 287 5788 / 077 600 6639

Email: zaneles@cosatu.org.za