By Johannah Malogadihlare
Trade union federations are unhappy with the SA Reserve Bank cutting the interest rate by 25 basis points, saying it could have done more.
Although some had hoped for a 50 basis point cut given the significant easing of headline inflation, the cut was in line with market expectations.
SA Federation of Trade Unions general secretary Zwelinzima Vavi said on Friday that the federation was disgusted by the Monetary Policy Committee’s decision.
“This quarter of a percent cut in the context of such an extremely high interest regime will not provide any reprieve for those struggling to meet their debt obligations. Most importantly, these unjustifiably high interest rates will continue to throttle the economy,” Vavi said in a statement.
He noted that the reduction did not translate to anything important for those struggling to honour their debt obligations.
Vavi highlighted that after Covid-19, the SA Reserve Bank
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