/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

COSATU is shocked and totally condemns the decision by the Reserve Banks monetary committee to increase the repo rate by 25%.

This is the most unhelpful, unwarranted and destructive interest rate hike by the South African Reserve Bank.

This reckless decision will cause untold harm to the beleaguered workers and the poor majority.

It will further slow economic and stifle any chances of employment creation.

Workers are battling to make ends meet and provide for their families and the economy is shedding thousands of jobs in all sectors.

Their measly wages are not keeping up with escalating prizes of basic necessities.

Food, water, fuel and electricity prices are repealing the wages of the working poor. It is insulting then for the exorbitantly paid SARB monetary committee members to unleash another unwarranted attack on the workers through this callous rare increase.

The country's economy has stagnated with an annual growth forecast of 09, this decision will further depress any chance of economic growth.

The nation needs economic growth that will help address our long-term 34 % unemployment, our deepening poverty levels and the eBay ever growing inequality.

COSATU is therefore puzzled as to how will making the cost of borrowing money and ultimately of doing business more expensive will help to stimulate the economy.

This ill-thought out and irresponsible decision will literally rob the poor workers out of their meagre wages and exacerbate an already worse crisis of unemployment.

The Reserve Bank is supposed to serve the people but it has now become a liability and a detached institution, whose actions contribute to continued joblessness and deepening poverty.

We reiterate our position and call for this privately owned Reserve Bank to be nationalised.

Those in charge of it no longer seem to care about the impact their careless actions have on the poor.

Issued by COSATU