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The trade union Solidarity has expressed its satisfaction with the Reserve Bank's decision to cut interest rates. This comes after Solidarity expressed the hope this morning that the Reserve Bank would lower interest rates today.

According to Solidarity spokesperson Jaco Kleynhans, the Reserve Bank's decision will result in an increase in consumers' disposable income, which could lead to a faster recovery of the economy. "The Reserve Bank left room to cut interest rates and we are glad that they have indeed done so. Solidarity believes that the poor retail spending and production figures that were recently released have encouraged the Reserve Bank to lower interest rates after all. We do not foresee for now that lower interest rates will lead to higher inflation and therefore we believe that the Reservebank made a safe decision today," Kleynhans said.