31 July 2025
The Federation of Unions of South Africa (FEDUSA) welcomes the announcement by the South African Reserve Bank Monetary Policy Committee (MPC) to decrease the repo rate by 25 basis points. While FEDUSA understands the MPC’s mandate to maintain price stability, the federation would have preferred a greater cut of the repo rate. This would bring much needed relief to cash-strapped workers who have endured multiple rate increases in the previous years.
This decrease comes after Stats SA reported that the Annual Consumer Price Inflation (CPI) was 3.0% in June 2025, an increase from 2.8% in May 2025. The CPI also increased by 0.3% month-on-month in June 2025.
The repo rate cut will bring relief to households, although minimal, and to the cost of businesses. It may support job creation, helping to lower the unemployment rate in the country. Increased consumer spending is important in stimulating South Africa’s economy.
While FEDUSA acknowledges the steady decreases in the repo rate since late last year, we must also bear in mind that the cost of living in South Africa remains high. Additionally, the increase in certain fuel prices such as diesel has been a major blow to workers, as it triggered further price hikes that reduced commuters’ disposable income. Furthermore, the current repo rate remains high compared to pre-pandemic levels in January 2020.
FEDUSA remains committed to advocating for the interests of workers and the wider community. We will continue to engage with the government and other stakeholders to find solutions to the challenges currently facing our country.
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