As South Africans grapple with the high cost of living, calls are growing for the South African Reserve Bank (SARB) to cut the repo rate by 25 basis points when it announces its decision on Thursday (20 March).
On Wednesday, Statistics South Africa (StatsSA) revealed that consumer inflation held steady in February at 3.2%, unchanged from January. This has reignited debates on whether the central bank should provide relief by lowering borrowing costs.
While some economists expect the rate to remain unchanged, others argue there is room for another 25-basis point cut—following three consecutive reductions since September 2024.
Union federation COSATU has urged SARB to ease pressure on households. Spokesperson Zanele Sabela emphasized that working-class families are already forced to make difficult financial decisions.
“According to Statistics SA’s latest expenditure survey, households spend more than three-quarters of their income on non-food items such as housing, water, electricity, and fuel—many of which are not VAT-exempt. Research also shows that people are sacrificing food to cover essential bills,” Sabela said.
With the repo rate currently at 7.5%, all eyes will be on SARB Governor Lesetja Kganyago as the country awaits the bank’s decision.
VOC News
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