The Public Servants Association (PSA) has called on the South African Reserve Bank (SARB) to keep the repo rate unchanged when the Monetary Policy Committee (MPC) announces its latest decision this afternoon.
The appeal comes as households continue to face mounting financial pressure from inflation and the rising cost of living. Economists remain divided over whether the Reserve Bank will increase interest rates or leave them unchanged.
Speaking to VOC News, PSA spokesperson Claude Naicker said further increases in borrowing costs would place an unnecessary burden on struggling South Africans.
“The Public Servants Association has urged the South African Reserve Bank to keep the repo rate unchanged when the Monetary Policy Committee announces its decision,” Naicker said.
He argued that wage increases have not kept pace with inflation or the cumulative rise in the cost of living, leaving many households under severe financial strain.
“The union says raising borrowing costs would place further strain on households already battling the rising cost of living,” he added. “Maintaining the current repo rate would help ease financial pressure on South African families.”
The repo rate directly influences the interest consumers pay on home loans, vehicle finance and other forms of credit, making the MPC’s decision a key indicator for both households and businesses.
SARB Governor Lesetja Kganyago is expected to announce the Monetary Policy Committee’s decision at 3 pm today, including whether the repo rate will be adjusted and by how many basis points.
VOC News
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