ActionSA said they welcomed the South African Reserve Bank Monetary Policy Committee's announcement of a 25 basis point reduction in the repurchase (repo) rate on Thursday.
Alan Beesley, ActionSA MP, said that this is the first rate reduction in several years, offering much-needed relief to South Africans who have been grappling with rising debt, increasing electricity costs and high interest rates. “While the reduction of the repo rate to 8% and the prime lending rate to 11.5% is a positive step, we believe there is room for bolder action, especially considering the severe financial strain faced by many households.”
Beesly added that a larger cut could have provided even greater relief to citizens battling high inflation and the cost-of-living crisis.
“However, ActionSA notes that improving economic indicators may lead to further rate reductions in the coming months which will create better conditions for economic recovery and easing financial pressures on struggling South Africans.”
Beesly said that while a welcome measure of relief, ActionSA believes that henceforth, broad economic reforms must ensure that South Africa’s stagnant private sector, rising unemployment, and ballooning debt are addressed in tandem with these measures. “We will continue to advocate for pragmatic, well-costed economic policies that prioritise the well-being of South Africans and work towards building a sustainable and prosperous South Africa for all.”
The Mercury