28 March 2019
The Federation of Unions of South Africa (FEDUSA) has welcomed the Monetary Policy Committee (MPC) decision to keep the repo rate or the rate that the Reserve Bank lends to commercial banks unchanged at 6.75% from its last meeting in January 2019.
The collective wisdom applied in reaching this correct and unanimous decision is most
certainly notable and FEDUSA applauds the reasoning process by the MPC. The decision implies that the prime lending rate or the rate at which commercial banks lend to the public will also remain unchanged at 10.25%.
Reserve Bank Governor Lesetja Kganyago said the upside risks to the domestic economy
centred around administered prices such as food, electricity and fuel. FEDUSA most certainly believes that these factors have been compounded by Eskom’s load-shedding, and dwindling business confidence.
FEDUSA Acting General Secretary Riefdah Ajam said the announcement brings great relief
to the working class and their already inhibited levels of disposable income, as they face
steep increases in administered prices especially electricity costs, which kick in on 01 April
2019, exacerbated by volatile fuel costs driven by exogenous factors such as the international oil prices and other geopolitical factors.