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Unemployment, poor economic growth the result of SARB interest rate increases?

The South African Reserve Bank (SARB) should move away from the utilisation of interest rates to keep inflation within its target range. Interest rate hikes should only be applied as a tool in instances where we experience excess demand, which we clearly do not have at the moment.

We are currently suffering the consequences of previous decisions by the SARB to increase interest rates. The latter resulted in increased inflation, higher unemployment figures and lower economic growth. The possibility of a ratings downgrade towards the end of the year is therefore much more of a possibility.

UASA expects that the SARB will do the sensible thing and leave interest rates where they are for the moment.

For more information or to set up an interview, please contact

Andre Venter at 083 251 3274.