UASA welcomes the decision by the South African Reserve Bank’s (SARB) Monetary Policy Committee’s (MPC) to keep the repo rate unchanged at 3.5%, despite our hope for a rate cut as it would put more disposable income in South Africans’ pockets.
Although the SARB’s forecasting model estimates an increase of 25 basis points in the repo rate in each of the second and fourth quarters of 2021, this will not be in the interest of the economy, especially as the unemployment rate still on the rise and the country still suffering from lockdowns.
With possible rate hikes may be on the cards, workers should use this opportunity to make sound financial decisions towards their household finances, such as to pay off debt and save all they can until the economy resumes running at full throttle again.
UASA urges its members and all South Africans to keep 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.
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