COSATU condemns increase in interest rates
Celeste Ganga
17 August 2007
The Congress of South African Trade Unions, has expressed its anger at the announcement that took place on Thursday, regarding
the increase in the interest rate.
17 August 2007
The Congress of South African Trade Unions, has expressed its anger at the announcement that took place on Thursday, regarding
the increase in the interest rate.
“We believe it’s a very bad decision. It will mean a higher cost of living,” says COSATU National Spokesperson, Patrick Craven.
Craven explains that it will particularly affect the poor, who are already suffering from the rise in food prices.
“Now they (the poor) will have to pay extra on their bonds and any loans that they are repaying,“ says Craven.
He adds that even more seriously, it will set back the struggle to create jobs. He explains that higher interest rates makes it more difficult to raise capital to start a new business.
“We believe that the Reserve Bank is failing to identify the main challenges which South Africa faces, which is unemployment and poverty, not inflation,” says Craven.
He adds that every policy should be judged on how well it contributes to reducing poverty and unemployment. He says that COSATU believes that this increase will do the exact opposite.
“We urgently call upon the Governor to reverse this decision, to bring the interest rate down, so that the economy can start growing faster,” says Craven.
Craven explains that it will particularly affect the poor, who are already suffering from the rise in food prices.
“Now they (the poor) will have to pay extra on their bonds and any loans that they are repaying,“ says Craven.
He adds that even more seriously, it will set back the struggle to create jobs. He explains that higher interest rates makes it more difficult to raise capital to start a new business.
“We believe that the Reserve Bank is failing to identify the main challenges which South Africa faces, which is unemployment and poverty, not inflation,” says Craven.
He adds that every policy should be judged on how well it contributes to reducing poverty and unemployment. He says that COSATU believes that this increase will do the exact opposite.
“We urgently call upon the Governor to reverse this decision, to bring the interest rate down, so that the economy can start growing faster,” says Craven.
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