Cosatu says new repo rate will make people spend more on debts

Raymond Pani

18 March 2016

In a statement issued, Cosatu says it is shocked and totally condemns the decision by the Reserve Bank monetary committee to increase the repo rate by 25%.

Cosatu’s National Spokesperson Sizwe Pamla said “this is the most unhelpful, unwarranted and destructive interest rate hike by the South African Reserve Bank, considering the fact that we need to find ways to grow the economy, this is going to sabotage those efforts.

The whole concept of increasing the repo rate means people are going to pay more and those who are working are going to spend a huge chunk of their salaries paying their bonds and loans. This will leave them with less money to spend and this economy needs people to spend.”