Lungile Ntimba
THE Economic Freedom Fighters (EFF) have called on the South African Reserve Bank (SARB) and the Monetary Policy Committee to abandon the unemployment-inducing policy of high interest rates that “suffocates the economy”.
The EFF National Spokesperson Leigh-Ann Mathys, said on Wednesday that there was a need for a different monetary policy approach since inflation has dropped.
This call comes after the Stats SA results announced on Wednesday, showed that consumer price inflation dropped down to 4.6% in July from 5.1% in June – the lowest recorded since 2021.
The latest Inflation indicates that it is now closer to the midpoint of the bank’s inflation targeting range.
“We call on the Committee to cut interest rates by 150 basis points at the next meeting, bringing the repo rate down to 6.75%” Mathys said.
The EFF believes that the current monetary policy instrument implemented by the SARB in 2022 when
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