UASA is relieved and pleased with the Reserve Bank’s monetary policy committee’s decision to hold off on hiking the interest rate and keeping it at 6,75% for now.
Together with an expected sharp increase in the fuel price of about R1,35/litre in April, according to economists, as well as a higher income tax burden, increases in customs and excise duties as announced by finance minister Tito Mboweni in his budget speech in February, and higher electricity tariffs, an interest rate hike would have increased the immense financial pressure on the already struggling South African worker to breaking point.
Workers under financial pressure lose their buying power as consumers, resulting in a struggling, low-growth economy and minimal job creation. Right now, South Africa needs the opposite.
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