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[FILE IMAGE]: Reserve Bank Governor, Lesetja Kganyago.
The UDM, Costu, ActionSA and Build One South Africa (BOSA) have welcomed the decision by the South African Reserve Bank’s Monetary Policy Committee (MPC) not to increase interest rates.
The MPC announced today it would cut the repo rate by 25 basis points.
The organisations say the cut will bring much needed relief to many South Africans who are already drowning in debt due the rise of living costs.
BOSA leader Mmusi Maimane applauded the MPC’s decision to reduce interest rates.
“As Build One South Africa, we welcome the decision by the MPC to reduce the interest rate by 25 basis points. This is important for our economy. Many South Africans are struggling and are finding themselves unemployed. And more than anything, South Africans who are working are finding more and more of their money is spent on servicing debt. This means South Africans are getting poorer,” says Maimane.
ActionSA Communication Director, Matthew George, says this is better than nothing and will bring respite to the rising cost of living faced by many South Africans.
“ActionSA welcomes the South African Reserve Bank’s decision to cut the interest rate by 25 basis points, bringing the repo rate down to 7% and the prime lending rate to 10.5%. While this move is a step in the right direction, we believe a 50 basis points cut would have been more appropriate, especially considering base line inflation has remained below with the lower end of the 3 to 6% of target band. The reduction in the cost of borrowing is a relief for South African business owners and working families and we welcome it,” says George.
Economist Koketso Mano weighs in on MPC rate decision:
Cosatu Parliamentary Coordinator, Matthew Parks, says this is a much-needed reprieve for many workers and their families.
“Cosatu welcomes the decision by the Reserve Bank to reduce the repo rate by 25 basis points. We are pleased that the Reserve Bank heeded Cosatu’s call. This is going to give relief to millions of workers who are highly indebted. Debt reports estimate about 70 of households are simply drowning in debt. Most workers are struggling to cover the rising cost of living with electricity, fuel, transport and food costs far above the overall inflation rate. Workers’ wages have not kept pace with the inflation as well,” says Parks.
UDM Chief Whip, Nqabayomzi Kwankwa, says the cut will also contribute towards stimulating economic growth.
“The UDM welcomes the decision of the Monetary Policy Committee of the South African Reserve Bank to cut the interest rate by 25 basis point. It is our view that this important step or decision is going to provide the much-needed reprieve to many South Africans who are already struggling to make ends meet and to service their debt. The step will also help to stimulate aggregate demand and ultimately the economic growth in the country,” says Kwankwa.
The Monetary Policy Committee has highlighted the opportunity to achieve a permanently lower inflation at minimal cost, based on analysis that the existing 3-6% target is too high and too wide, and should be reformed. #SARBMPCJuly25 #InterestRates pic.twitter.com/n9hPUWOxvf
— SA Reserve Bank (@SAReserveBank) July 31, 2025
