29 January 2026
The Federation of Unions of South Africa (FEDUSA) notes with deep concern the decision by the South African Reserve Bank (SARB) to keep the repo rate unchanged at 6.75% following the Monetary Policy Committee (MPC) announcement today.
The decision not to cut the repo rate is a slap in the face to many workers, households, and South Africans at large. Hard-working South Africans are already struggling to survive in the current economic climate. The cost of living remains high, and many households continue to experience severe financial strain.
While FEDUSA recognises that an unchanged repo rate provides stability for the financial system, it offers no immediate relief to workers and households who are already struggling to make ends meet.
FEDUSA believes that an interest rate cut could have made a positive contribution to economic activity by supporting consumption and easing financial pressure on workers and South Africans more broadly. It is critical that we acknowledge that the monetary policy alone cannot address South Africa’s many challenges, including unemployment and inequality.
In conclusion, FEDUSA reiterates that South Africa needs a monetary policy that puts people first, supports decent work, and protects households from excessive financial pressure.
END.