Trade union federations are alarmed by “the suffocation of the economy”
The Reserve Bank increased the repo rate by 25 basis points to 3.75%, which means it is now more expensive to borrow money.
FILE: Businesses have come under great pressure since the COVID-19 epidemic hit our shores and there does not appear to be a break with the difficulties on the horizon. Pixabay.com
CAPE TOWN – Union federations are sounding the alarm on what they call “the stifling of the economy” with high fuel prices, COVID-19, devastating blackouts, loss of jobs and pay cuts and more recently. The increase in the repo rate.
The Reserve Bank raised the repo rate by 25 basis points to 3.75%, which means it is now more expensive to borrow money.
Earlier this month, the price of gasoline and diesel rose by more than R1 at a time when frustrated motorists have to spend more time in traffic due to Eskom’s power outage.
Businesses have come under great pressure since the COVID-19 epidemic hit our shores and there does not appear to be a break with the difficulties on the horizon.
They are still repaying the debt from the impact of foreclosure restrictions and now have to absorb the brunt of power outages, sky-high fuel prices and devastating pay cuts.
Cosatu’s Sizwe Pamla said Thursday’s decision to raise the repo rate – making it more expensive to borrow money from a bank – could not be explained.
“Because one would have hoped that all of this, the Reserve Bank knows about it and now you’re going to force them to spend more than before.” We can’t see why they decided to do it at this time. “
Saftu, meanwhile, is also deeply concerned.
Its workers reject what they call a “best interest regime”.
They said this would only slow the pace of economic recovery and growth, which should be of massive concern to all South Africans.