- 78946_saftu_calls_for_a_fall_of_at_least_3%_in_interests_rates_to_begin_a_long_overdue_economic_recovery!.pdf0.54 MB
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believes that the July 18 rate cut must exceed the tokenistic 0.25% widely predicted. Our situation is so dire, that we desperately need both a kickstart to economic growth and relief for poor and working people who can’t pay our bills. We demand a major adjustment of the interest rate, even if it requires tighter exchange controls to offset resulting capital flight.
We have nothing to fear from inflationary tendencies. The current ‘real’ (after-inflation) rate of 2.3% - given the first quarter of 2019’s -3.2% GDP shrinkage – is far too high. As The Economist records, South Africa’s interest rate compares unfavourably with other emerging markets, with only four countries out of more than 50 that issue 10-year state bonds paying a higher price to borrow internationally.
Full Statement Attached
Issued by SAFTU
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