UASA Media Release: 26 January 2023
Statement by Abigail Moyo, spokesperson of the trade union UASA:
The South African Reserve Bank’s Monetary Policy Committee (MPC) increased the repo rate by 25 basis points today. While lower than the 50 basis points generally expected by economists, the hike comes while an affordability and economic crisis plague workers.
The new repo rate of 7.25%, up from 7% , means it more than doubled within a year and is higher than before the Covid-19 pandemic, pushing the prime lending rate to 10.75% .
Higher prices, looming electricity increase of nearly 3 times the current inflation rate in April, combined with higher interest rates bring a walloping double blow to workers’ budgets, shrinking their disposable income even further.
UASA encourages its members and fellow South Africans with home and other loans to tighten their belts to keep abreast of this financial challenge. Do your utmost to balance your needs and wants with your disposable income. Let’s be moneywise, think twice before spending and keep our heads up.
For further enquiries or to set up a personal interview,contact Abigail Moyo at 065 170 0162.