South African Trade Unions Urge Reserve Bank to Keep Interest Rates Steady

The South African Federation of Trade Unions (SAFTU) and the Congress of South African Trade Unions (COSATU) have jointly appealed to the South African Reserve Bank to refrain from raising the repo/interest rate at its upcoming monetary policy meeting. Both unions argue that higher rates would deepen the cost‑of‑living crisis for workers already burdened by debt, unemployment, food and fuel price spikes, and rising electricity tariffs. They note that inflation remains within the Reserve Bank’s 4 % target and that recent price pressures stem largely from the war in the Middle East. The unions contend that a rate hike would increase loan repayments, suppress investment, trigger job losses and push more families into hunger, urging the bank to exercise “strategic patience” and prioritize job creation and social protection instead of tightening monetary policy.