EFF statement on the Reserve Bank repo rate increase

20 May 2022

The EFF condemns the decision of the South African Reserve Bank to increase the repo rate. The Reserve Bank, with the support of the ANC incompetent collective, has decided to prioritise the interest of the white capitalist establishment at the expense of workers and poor people. The Reserve Bank, a group of unelected individuals with a record of succumbing to neoliberals, who sacrificed jobs and manufacturing to implement neoliberalism, is emboldened to take policy decisions that will have catastrophic consequences for a highly indebted society.

The Reserve Bank has increased the repo rate by 50 basis points to 4.75%. This is the 3rd increase since the beginning of the year 2022 that the Reserve Bank has increased the repo rate. This brings the repo rate increase by 100 basis points, an increase from 4% to 4.75% from January to date. The recent spite of repo rate increases is yet another demonstration that the interests of the financial markets, in a highly financialised economy of a population that is swimming in debt, are more important than the millions of impoverished South Africans.

Hundreds of South Africans lost their homes and cars as banks repossessed their belongings during COVID-19 when they lost their jobs. The majority of companies have not recovered from the pandemic, 2021 July unrests and the floods in KwaZulu-Natal and Eastem Cape, and are failing to increase salaries and wages in the interests of profits. We witness the greed and gluttonous posture of the CEO of Sibanye-Stillwater who was paid an R300 million salary while workers are denied a mere R 1000 salary increase.

Despite all of this, the repo rate is increased, ensuring the continued misery of our people while still coming to grips with the economic effects of COVID-19 and the permanent jobs bloodbath.

The EFF is once again vindicated as we have previously warned that there is a strong lobby group that is controlling the reserve bank directly and indirectly, including through shares ownership. The call for the nationalisation of the South African Reserve Bank is now more urgent than ever before. We cannot continue to allow unelected group puppets of the World Bank and IMF to hold us hostage in the interest of the white capitalist establishment.

Issued by Sinawo Thambo, National Spokesperson, EFF, 20 May 2022