EFF statement on the South African Reserve Bank decision to increase the interest rate
24 November 2022
The EFF condemns the sickening, cruel, and senseless decision of the South African Reserve Bank Monetary Policy Committee to increase the repo rate by 75 basis points to 7% per year effective from the 25th of November 2022. This is the third time the Reserve Bank has increased the repo rate in the last 9 months, with a steep increase of a cumulative 200 basis points. The Reserve Bank's commitment to a defunct monetary policy that only seeks to serve the financial sector, particularly banks that continue to make billions in profits when the South African economy has collapsed with no growth prospects in sight, while highly indebted workers continue to lose homes and assets due to high debt repayment costs is capitalist madness.
We maintain that the Reserve Bank's decision is a calculated attack on the working class, which is currently on its knees and facing multiple attacks in order to hasten the collapse of the state in order to accommodate rampant privatization of the state. The Reserve Bank continues to increase interest rates under the so-called normalisation of policy, yet the only normalisation is the enrichment of international financiers, an act of neo-colonisation by the puppets at the National Treasury and the Reserve Bank.
There is no practical and believable plan that will rebuild South Africa's economy into productive and job creative growth to justify the current trajectory of ridiculous and disastrous policy choices.
The EFF has consistently called out the Reserve Bank and the inept governing party for their obsession with a defunct inflation targeting policy that has proved disastrous for millions of poor and working-class South Africans. The so-called primary object of the South Africa Reserve Bank is set forth in a constitution that was framed by a racist white regime when some puppets in the ANC who were readily and willing to sell out were taking instructions from banks based on the Washington Consensus' terms and conditions. Not only did the Constitution serve to protect the interests of the white minority, it also went further and collapsed the productive economy that should have allowed millions of South Africans to participate actively in the economy.
Today, hundreds of homeowners are losing homes for which they have worked hard and thus far made strides to pay off loans. This is because South African banks continue to treat black South Africans with such a racist attitude that even during these difficult and challenging times, the first and preferred approach is to repossess people's homes and leave parents with children in the street.
The EFF is extremely concerned that in addition to the increasing cost of repayment of loans, South Africans have to contend with increasing prices of petrol, food, and all other essentials for survival. Thus far, there has not been any effort to protect livelihoods, jobs and human dignity.
It is high time that all the Left forces come together to reject the neo-liberal redundant obsession led by the National Treasury and begin to work together to mount a sustainable, constructive, and well-planned resistance against the stooges of the white capital establishment that is only concerned with profit over human life. The time has long past for the inhuman policies that perpetuate apartheid economy to continue unchallenged by stooges of the financial sector.
Issued by Sinawo Thambo, National Spokesperson, EFF, 25 November 2022
