UASA Media Release: 24 September 2021
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA welcomes the decision by the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) to keep the repo rate unchanged at 3.5%.
For the average worker, the cost of living remains high just as seen in the recent announcement by Stats SA which highlighted that the Consumer Price Index (CPI) increased slightly from 4.6% in July to 4.9% in August 2021.
An increase in the interest rate would have placed already financially stressed-out workers under even more pressure on top of our current economic woes, hence UASA welcomes the unchanged rate.
According to economists, other points highlighted by the SARB include the following:
· The SARB forecasts global economic growth for 2021 at 6.2% (up from the previous estimate of 6.1%). For 2022 and 2023, the SARB expects global growth of 4.4%, and 3.4%, respectively. Although slowing, it still represents strong growth rates.
· The SARB expects the South African economy to grow by an upwardly revised 5.3% this year (from a previous estimate of 4.2%). The economy is expected to grow by 1.7% in 2022, (down from the previous 2.3%) and by 1.8% in 2023 (down from 2.4%).
· The SARB said higher food prices, a weaker rand and high oil prices pose a risk to its inflation forecast.
· The SARB’s forecasting model predicts the repo rate will increase by 25 basis points in the last quarter of this year and in every quarter next year and in 2023.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.