The Independent Municipal and Allied Trade Union (IMATU) is elated by the decision of the Governor of the South African Reserve Bank (SARB), Gill Marcus, to cut the repo rate by 0.5 basis points from 5.5% to 5.0%.
?Given the prevailing inflation stability, an interest rate cut will give our financially strapped members some much needed economic reprieve. This decision will also encourage an increase in consumer spending. While there has been a significant reduction in the price of petrol and diesel since the last Monetary Policy Committee (MPC), this decease as well the general decreases reported in thelatest Consumer Price Index (CPI) figures released by Statistics South Africa does not necessarily translate into tangible savings for our members. SouthAfricans are still battling to meet high food, fuel and electricity prices,? commented IMATU General Secretary, Johan Koen.
The cost of a basic food basket has increased on average by 16% per year for the last five years, the price of electricity has effectively increased by 82.3% in the last three years, petrol prices have increased on average by 11% per year for the last decade and Metrorail's ticket prices have effectively increased by 69% in the last three years.
IMATU is pleased that South Africans have been given some much needed financial breathing room.