UASA Media Release: 21 November 2024
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA welcomes the second repo rate cut of the year by the South African Reserve Bank’s (SARB’s) Monetary Policy Committee (MPC).
The economic outlook is brighter with the 25-basis point cut in the repo rate to 7.75% and consumer price inflation dipping below the SARB’s target range of 3% – 6%. The prime lending rate effective tomorrow will now be 11.25%.
According to SARB Governor Lesetja Kganyago, continued growth recovery follows the weak economic performance in 2023 and the first half of 2024. Although goods prices have slowed more than those for services, this outcome reflects the benefits of a more robust exchange rate and a lower oil price relative to last year.
According to the SARB, local inflation in the near term appears well contained, and the forecast shows rates will ease further in the future, stabilising slightly above 7%.
Although the SARB warns of some upside risks in the medium term due to higher prices for food, electricity, water, insurance, and wage settlements, the current economic outlook gives hope for a positive turnout.
UASA is pleased that the repo rate cut will ease workers’ financial stress ahead of the festive season.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.