23 July 2026
The Federation of Unions of South Africa (FEDUSA) notes with frustration the decision by the South African Reserve Bank’s Monetary Policy Committee (MPC) to keep the repo rate unchanged at 7%, leaving the prime lending rate at 10.50%. Since the start of 2026, the repo rate has remained unchanged at two consecutive meetings, followed by a 25-basis-point increase in May providing no relief for workers.
FEDUSA reiterates that while an unchanged repo rate may offer some stability in borrowing costs for indebted consumers, it fails to deliver meaningful relief to workers and households already grappling with intense financial strain driven by the high cost of living.
Inflation has increased from 3.5% in January to 5% in June, raising the cost of living. While these increases may seem small on their own, together they place significant pressure on household finances, with more income being spent on basic needs. This year has been particularly difficult for workers and consumers alike, with persistently high fuel prices. FEDUSA emphasises that surviving in the current economic environment is becoming increasingly difficult and unsustainable.
FEDUSA acknowledges that external factors influence these decisions; however, this does not change the reality that many people can no longer afford to survive on stagnant wages amid the rising cost of living.
In conclusion, FEDUSA reiterates the call on policymakers to carefully consider the real and immediate impact of monetary policy decisions on workers and vulnerable households. While economic stability remains important, it cannot come at the expense of people’s ability to meet their basic needs. A balanced approach that prioritises both inflation control and the financial well-being of citizens is urgent. South Africans cannot continue to bear the burden of rising costs without meaningful relief and decisive action.
END.