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