UASA Media Release: 20 November 2025
Image source: www.resbank.co.za
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA welcomes the South African Reserve Bank’s (SARB) Monetary Policy Committee’s (MPC) decision to reduce the repo rate by 25 basis points, bringing the repo rate to 6.75%.
Although all indicators suggest that the MPC could have reduced the repo rate at its September meeting, being too cautious has a cost in terms of lower investment, economic growth and fewer employment opportunities, which in turn impact the standard of living of South African households. Nevertheless, this decision by the MPC, especially ahead of the festive season, is a financial relief for consumers.
This decision to cut the repo rate was influenced by the recent announcement by Finance Minister Enoch Godongwana to adjust the country’s official inflation target downwards to 3%. However, inflation expectations, salary increases and administered prices will play a huge role in the new regime.
It will take some time for all stakeholders to understand and buy into the new regime. SARB Governor Lesetja Kganyago noted that the quicker this happens, the quicker interest rates can be reduced further. In this respect, analysts estimate that interest rates can be reduced by another 50 to 75 basis points in the next two years.
For consumers, lower inflation means price increases slow down and they have more buying power. Moreover, the economy gets a boost from lower interest rates, which helps with debt costs and supports investment.
Kganyago explained that inflation has accelerated over the past few months, reaching 3.6% for October, which is higher than the 3% average for the first half of the year.
“Because of these downside surprises, together with a stronger rand and a lower oil price assumption, we have small downward revisions to our inflation outlook for both 2025 and 2026. We remain on track to deliver 3% inflation over the medium term,” he said.
As we look forward to economic growth and stability in the new year, we urge businesses and stakeholders to consider consumers’ financial outlook when pricing goods and services during the festive season. In the new year, we hope to see advanced measures aimed at job creation, economic growth and supporting disposable income – ensuring that consumers can enjoy their income and stretch it further beyond household and basic needs.
UASA also encourages companies and employers to explore practical ways to grow their businesses, contributing more to economic growth and increasing their capacity to negotiate viable wage agreements for their employees in the new year.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.