UASA welcomes the decision by the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) to cut the repo rate by another 25 basis points to 3.5%.
Salary cuts and retrenchments as a result of the lockdown have had a huge financial impact on millions of workers in South Africa. The latest rate cut will hopefully free up a bit more money that workers can use to either top up their savings or pay off their debt commitments faster.
The rate cut will also allow workers to spend more on goods and services thereby boosting the economy and helping to grow our GDP.
UASA urges its members who will now have more money in hand to use it wisely to settle debts or keep on paying the same amount towards their home loans and other debt commitments as they did before the rate cuts, if at all possible.
The difficult times we now experience are far from over and the best action anyone can take now is to protect themselves as well as they can against financial distress by living frugally and spending wisely.
We realise that workers can hardly be expected to react favourably to another plea to tighten their belts, but we urge them to be responsible and use the opportunity to ease their debt burden before interest rates start climbing again.
For further enquiries or to set up a personal interview, contact Stanford Mazhindu at 074 978 3415.