Deputy President of the Economic Freedom Fighters (EFF), Floyd Shivambu says the South African Reserve Banks’s (SARB) monetary policy is senseless and showing signs of being at war with the working class.
Shivambu was reacting to yet another repo rate hike of 50 basis points, taking it to 8.25%, with prime now at 11.75%.
“South Africa’s Central Bank is slowly but surely drifting into enemy territory. It’s squarely defining itself as an enemy of waged labourers who are largely tied to banks for housing and cars’ loans which will be impossible to repay. These senseless monetary policies must be rejected with contempt,” he wrote on his twitter account.
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SARB Governor Lesetja Kganyago made the announcement on Thursday during a media briefing in the capital, Tshwane. He said that at the current repurchase rate level, policy is restrictive, consistent with elevated inflation and risks.
“The policy stance aims to anchor inflation expectations more firmly around the mid-point of the target band and to increase confidence of attaining the inflation target sustainably over time,” Kganyago added.
SARB has raised the repo rate at least ten times since November 2021.