UASA Media Release: 30 May 2024
Image Source: South African Reserve Bank (SARB)
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA welcomes the Monetary Policy Committee (MPC) of the South African Reserve Bank’s (SARB) decision to keep the repo rate unchanged at 8.25% for a third consecutive time following a recorded decrease in April’s consumer price inflation (CPI) reading,
The prime lending rate of local commercial banks also remains unchanged at 11.75% for the sixth consecutive time.
Stimulus is necessary though as the SARB still forecasts GDP growth at only 1.2% for this year, despite the improvement in energy supply due to reduced load shedding. Much more is needed to create jobs.
A day after the country’s most significant election in 30 years, the repo rate announcement underscores the potential impact of political uncertainty on the inflation fight. Investors, markets and workers alike await more clarity on domestic policy as the results of the elections will unfold in due course. There is also still considerable uncertainty about long- term inflation globally.
Whilst the latest report has shown improvement with inflation easing in April to 5.2%, the South African Reserve Bank expects stabilization of the inflation to its mid-range objective of 4.5% by the second quarter of 2025.
While easing inflation strikes a ray of hope for consumers and workers, UASA encourages its members and fellow South Africans to be financially responsible as the nation eagerly waits for the election outcome. The post-election period will be crucial for economic activities, as several outcomes might impact the country’s currency, economy, and inflation rate.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.