UASA is pleased that the monetary policy committee of the South African Reserve Bank cut the repo rate by 100 basis points, or one percentage point, this afternoon.
UASA has long pleaded for a more aggressive and substantial cut in the repo rate to stimulate the economy and put more money in struggling workers’ pockets.
Other banks had already reduced their repo rates with the Bank of England making an emergency 25 basis point cut to try and cushion their economy from the uncertainty surrounding the Coronavirus and its effects on the global markets.
We saw the same cuts as well from the United States Federal Reserve and in Saudi Arabia.
We hope it is not too late and that the cut from 6.25% to 5.25% will arrest the downward economic spiral we find ourselves in. The country is already in a recession and the disruption due to the Coronavirus will leave nothing and no-one unscathed.
This cut will make borrowing more attractive for individuals and businesses alike, encourage consumer spending and hopefully set us on the track of economic recovery.
At the very least the cut will ease the financial stress of workers in these difficult times.
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