Thursday, March 25, 2010

Rate cut generally welcomed

By Khanyisa Tabata
25 March 2010


The Federation of Unions of South Africa says they are pleased with the Reserve Bank Monetary Policy Committee’s announcement today that the repo rate would be cut by 50 basis points or zero-point-five-percent.

Fedusa spokesperson Teixeira George says it is important to keep interest rates low, despite the fact that the economy seems to be bouncing back after the recent recession.

George says the MPC is providing much needed room for monetary stimulus.

George added that the economy is struggling with low consumer spending, high unemployment figures and lower personal income tax while the nation currently has a budget deficit. By reducing the repo rate struggling local companies are able to compete on the global stage and create more employment,

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