SAFTU to Picket Against Expected Repo Rate Hikes

Saftu General-Secretary, Zwelinzima Vavi speaking at May Day Rally in Durban on May 1, 2023.

The South African Federation of Trade Unions (SAFTU) is due to hold a picket outside the Reserve Bank on Thursday. The Bank is expected to hike the country’s repo rate when it makes its announcement on interest rates this afternoon.

Economists anticipate that the Reserve Bank’s Monetary Policy Committee will raise interest rates by between 25 and 50 basis points.

SAFTU’s General-Secretary, Zwelinzima Vavi outlines details of the planned picket.

“We will be in Helen Joseph Street in Pretoria at 13:00 to protest against what the MPC, SARB, and SA government is following. The MPC is meeting today and is likely to increase the interest rates by another 50 basis points, which is going to increase the interest rates to totally unaffordable levels.”

Weak rand

Meanwhile, analysts predict a rate hike of 50 basis points is on the cards when the Reserve Bank announces its decision on interest rates.

They say the recent weakness in the rand will be one of the main drivers behind a likely decision to hike interest rates.

The Reserve Bank has increased rates by 425 basis points since November 2021. The repurchase rate currently sits at 7.75% while the prime lending rate is at 11.25%.

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