Cosatu asks MPC for a rate cut

JOHANNESBURG - Cosatu hopes for a rate cut ahead of Thursday's Reserve Bank Monetary Policy Committee announcement.

The trade union federation believes the central bank has the room to bring relief to workers with a 25-basis points cut. 

"There is plenty of space for the Reserve Bank to reduce the repo rate," said Cosatu's Matthew Parks.

"Inflation has been consistently falling."

Parks said workers are struggling with the cost of living.

READ: SA Reserve Bank cuts repo rate by 25 basis points to 7%

"Most of the goods that workers spend their money on increase above levels of inflation, especially electricity, fuel, transport and so forth."

Economists say there's a small chance the Reserve Bank may cut interest rates.

Indebted South Africans have enjoyed a series of cuts since September 2024.

The repo rate is at 6.75 percent. 

The prime lending rate that commercial banks use in their negotiations with clients is 10.25 percent.

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