SARB repo rate decision: Conservative and disappointing

21 November 2024

Today's decision by the SA Reserve Bank Monetary Policy Committee is disappointing and too conservative In a unanimous decision, the MPC reduced the policy rate by 25 basis points, to 7.75%.

With inflation sitting at 2,8%, the lowest since June 2020, and below the Reserve Bank's target range of 3-6%, many economists held the view that 50 basis points should have been the decision.

The SARB had an opportunity to help alleviate the cost of living crisis by being less incremental in their repo rate cuts.

The majority of South Africans are heavily indebted and are struggling to make ends meet.

As we head into the festive season, consumers will struggle to spend.

Further deepening our economic stagnation.

Retailers, in particular small businesses, and our economy rely on a December boost in sales.

South Africa is stuck in an economic growth crisis, trapping millions of South Africans in unemployment and unacceptable levels of poverty.

Issued by Brett Herron, GOOD SG, 21 November 2024