Fighters say reserve bank is obsessed with outdated and redundant monetary policy in the face of evidence of failure
EFF statement on SARB’s decision to increase the interest rate
22 September 2022
The EFF is disgusted by the senseless, cruel and irrational decision of the South African Reserve Bank Monetary Policy Committee to increase the repo rate by 75 basis points to 6.25%. The Reserve Bank has been increasing interest rates by a 50-basis point increase to 4.57% in May and a 75-basis point increase to 5.50% in July.
The South African Reserve Bank’s obsession with outdated and redundant monetary policy in the face of overwhelming evidence of absolute failure. The current monetary policy will only lead to more misery for many of the working-class households that are highly indebted, will lose their homes and cars, and are struggling to afford food and other essentials.
The finance minister succumbed to international finance and markets and announced in February that he would reduce the percentage of the amount pension funds and insurance companies are required to keep in the country from 70 per cent to 50 per cent, resulting in massive capital outflows. This is the money that was supposed to be invested correctly in productive sectors of the economy instead of being given to
financial gamblers only obsessed with short-term investment in credit and financial instruments. This happens all while South Africa’s productive sectors are struggling to attract capital investment to rebuild some of the critical employment creating sectors back to full operations.