UASA Media Release: 29 January 2026
Image Source: SA Reserve Bank on X.
Statement by Abigail Moyo, spokesperson of the trade union UASA:
Although consumer price inflation remains favourable and the Rand has strengthened against the Dollar, the Monetary Policy Committee of the South African Reserve Bank has kept the interest rate at 6.75%. UASA acknowledges this decision may be disappointing, but considers the rate manageable for consumers.
The Reserve Bank’s quarterly projection model still anticipates the possibility of two rate cuts this year. However, the MPC remains cautious due to ongoing risks of higher consumer price inflation.
Key risks to the CPI outlook include potential increases in electricity tariffs, higher meat prices due to ongoing foot-and-mouth disease outbreaks, adverse weather affecting fruit and vegetable prices, and uncertainty about the Rand’s exchange rate and rising consumer demand.
The SARB forecasts CPI to peak at 3.6% for December 2025, then average 3.3% in 2026, 3.2% in 2027, and 3.0% in 2028. This may allow for future repo rate reductions. UASA notes the MPC’s call for improved economic performance, which could result from ongoing structural reforms, prudent government debt management, and lower administered price inflation.
As we have started the year on a positive financial note, we trust the MPC will consider the financial needs of South Africans when making decisions throughout the year. We urge UASA members and workers to remain financially vigilant and make positive financial decisions as the year unfolds.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.