UASA Media Release: 18 November 2021
Statement by Abigail Moyo, spokesperson of the trade union UASA:
This afternoon saw the first rate hike in three years when the South African Reserve Bank raise the repo rate by 25 basis points, with 12 more increases expected over the next three years. The prime rate of banks will now increase to 7,25%.
While an increase in the repo rate was widely expected towards the end of 2021, this is still unwelcome news for homeowners and indebted workers, however, pensioners dependent on their savings will feel relieved.
The interest holiday seems over for the tightly stretched household finances of most South Africans, the over-indebted and struggling companies.
UASA reminds its members and consumers in general to make sound financial decisions by paying off debts and saving all they can. With the fourth Covid 19-wave looming and the possibility of future lockdowns, uncertain times are not yet something of the past.
Unemployment may rise even more, and fourth-wave lockdowns will ravage the economy.
UASA urges South Africans to continue keeping a tight budget and be wise with their finances. The Covid-19 pandemic proved that uncertain times may strike one’s finances at any time. Being prepared and careful is essential.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.