UASA Media Release: 18 September 2025
Image source: South African Reserve Bank (SARB).
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA expresses concern over the South African Reserve Bank’s (SARB) Monetary Policy Committee’s (MPC) decision to keep the repo rate unchanged at 7%. Many consumers were hoping for a reduction in interest rates.
This decision was influenced by recent data from StatsSA, which reported that annual consumer inflation stood at 3.3% in August. This highlights the significant impact of inflation on interest rate decisions. SARB Governor Lesetja Kganyago explained that inflation expectations play a crucial role in shaping the transition to the bank’s preferred inflation target of 3%. Therefore, the committee opted to maintain the current rates.
Kganyago emphasised, “The forecast suggests that rates will ease gradually as inflation returns to the lower end of the 3-6% target range. The MPC stresses that stabilising inflation at 3%, rather than 4.5%, implies a lower long-term level for the policy rate.”
Many South Africans continue to struggle with rising debt levels, stagnant wages, and an increasing cost of living. While we understand the SARB’s cautious approach to guarding against future inflationary risks, we urge greater consideration of the impact on consumers and the overall livelihood of the people. Monetary policy should strike a balance between macroeconomic stability and the socioeconomic realities faced by citizens.
UASA calls on the government and economic stakeholders to expedite measures aimed at job creation, reducing inequality, and supporting disposable income—especially for low- and middle-income earners. We also extend our gratitude to companies that have been signing fair wage agreements for their workers during these challenging times; they are helping fellow South Africans navigate daily financial hardships.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.