UASA Media Release: 23 July 2026
Image Source: South African Reserve Bank on X.
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA has welcomed the decision by the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) to leave the repo rate unchanged at 7%, with the prime lending rate remaining at 10.5%.
The decision comes against a challenging economic backdrop following the announcement by Statistics South Africa that Consumer Price Inflation (CPI) reached 5% in June, driven primarily by increases in fuel and electricity costs.
According to SARB Governor Lesetja Kganyago, while the year began with positive economic momentum, households have been significantly affected by rising fuel prices, placing additional pressure on consumers. He further highlighted that municipal service delivery challenges continue to constrain economic growth.
The Reserve Bank has also expressed concern about weakening business and consumer confidence, as well as declining commodity prices, which continue to weigh on the broader economic outlook.
Although many market observers anticipated a further interest rate increase, UASA believes the MPC’s decision to hold rates steady will provide much-needed short-term relief to consumers who are already grappling with elevated living costs.
UASA remains hopeful that improving economic conditions could create space for interest rate cuts later in the year, helping to ease financial strain on households and providing welcome relief ahead of the festive season.
At the same time, UASA calls on government and relevant stakeholders to urgently address the underlying factors driving inflation. Sustaining consumer spending power is essential to stimulating economic activity and supporting long-term growth.
UASA further encourages consumers to adopt prudent financial habits during these challenging times by prioritising savings and making informed spending decisions.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.