UASA Media Release: 23 September 2026
Image Source: SARB on X.
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA notes with concern the South African Reserve Bank’s (SARB) decision to increase the repo rate by 25 basis points to 7.25%, bringing the prime lending rate to 10.75%.
The latest increase comes at a time when South African workers and consumers are bent over backwards under mounting financial pressure caused by the high cost of living, rising fuel prices, escalating utility costs and persistent inflation.
While UASA recognises the SARB’s constitutional mandate to maintain price stability and curb inflation, the impact of higher interest rates on households cannot be ignored. The simultaneous increase in both the repo rate and consumer inflation places additional strain on workers whose finances are already stretched to the limit.
For many South Africans, today’s decision means higher monthly repayments on home loans, vehicle finance agreements, personal loans and other forms of credit linked to the prevailing interest rate. As workers receive their salaries, a larger portion of their income will once again be absorbed by debt servicing costs, leaving less available for essential household expenses.
UASA has consistently warned that salary increases are being eroded by rising living costs. Any gains secured through wage negotiations are quickly offset by increases in the price of fuel, food, electricity, transport and debt repayments. As a result, many workers are finding it increasingly difficult to maintain their standard of living and provide for their families.
The continued rise in borrowing costs also places additional pressure on economic growth, consumer spending and business confidence, at a time when South Africa’s economy remains under significant strain.
UASA therefore calls for intensified efforts to address the underlying drivers of the cost-of-living crisis, particularly high fuel and energy costs, which continue to affect households and businesses across the country.
Government, business and policymakers must work together to implement measures that provide meaningful relief to consumers and stimulate economic growth.
South Africans cannot continue absorbing one financial shock after another. Urgent intervention is required to ease the burden on households before the economic pressures facing workers and consumers become irreversible.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.