While political parties have welcomed the relief that will be brought by the 25 basis points cut in the repo rate , they say more still needs to be done to stabilize inflation and reduce the rising cost of living. This after South African Reserve Bank announced the repo rate cut this week.
Government has already welcomed the reduction of the repo rate. But Parliamentarians seem to differ about certain aspects of the announcement.
"We reject the decision by the Monetary Policy of the South African Reserve Bank to reduce the repo rate by 25 percent base points. While we welcomed the much-needed relief for the working class and the consumers, the extreme conservatism demonstrated by the Reserve Bank remains a great concern. Our economy is in a deep crisis. Economic growth remains sluggish. It has failed to grow more than two percent in the past five years since [Cyril] Ramaphosa took office as the President," says EFF spokesperson Leigh-Ann Mathys.
But other parties have welcomed the reduction in the repo rate.
"The ACDP welcomes decision to cut the repo rate by 25 basis points to eight percent with the prime lending rate dropping to 11.5 percent. This follows inflation coming in at 4.4 percent well within the Reserve Banks target rate to three to five percent with the positive outlook going forward. Whilst this reduction will not be too much, it singles an important point for high interest rates," says ACDP MP Steve Swart.
