EFF Condems Reserve Banks “Senseless Ans Cruel” 75 Basis Point Repo Rate Hike

• The Economic Freedom Fighters has slammed the South African Reserve Bank interest rate hike saying it would hurt the working class
• The SARB increased the repo rate by 75 basis points on Thursday, 22 September, bringing it to 6.25%
• The EFF called on trade unions to mobilise all sectors of society against the "cruel and irrational" interest rate hike

JOHANNESBURG - The Economic Freedom Fighters (EFF) denounced the South African Reserve Bank (SARB) Monetary Policy Committee's (MPC) decision to increase the repo rate by 75 basis points, saying it is "senseless, cruel and irrational".

SARB raised interest rates on Thursday, 22 September, for the sixth time to protect the weakened rand and brace for anticipated inflation.

TimesLIVE reported that the increase of the repo rate to 6.25%, which followed the 75 basis point hike, is part of the two most significant consecutive rate increases in two decades.

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The EFF released a media statement that foreshadowed that the repo rate hike would further hurt the working-class citizens who are already highly indebted. The Red Berets claimed that the working class would lose their homes and struggle to afford food and other essentials.

The EFF implored trade unions to reject the redundant neoliberal compulsion of the National Treasury and the Reserve Bank and organise in all sectors to mobilise society.

Some analysts accused the party of being myopic and predicted that the interest rate would increase by another 50 basis points in November.

South Africans react to the repo rate increase

Some South Africans agree that the repo rate increase is far too much.

Here are some comments:

@Umalumewabantu said:

"Guys, let's print more money"

@SandileMkono_ commented:

"They need to face reality, When covid lockdown came, everything fell apart, and SARB dropped interest rates to their lowest in years, but everything is coming back to normal hence SARB has now brought rates back to what they were a month before lockdown, 6.76repo 9.75prime."

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US Fed raises key interest rate as recession fears mount

City of Tshwane refuses to accept Eskom’s 32% electricity tariff price hike

In other news, Briefly News reported that the City of Tshwane has rejected the 32% tariff price increase that South African power utility Eskom has proposed for the 2023/24 financial year.

The power utility has requested that the National Energy Regulator of South Africa (Nersa) increase the price of electricity by 32,02%.

SABC News reported that the City believes Eskom should be limited to a single-digit increase per the National Treasury guidelines. Sipho Stuurman, the City of Tshwane's mayoral spokesperson, said that if the request is approved, it will take effect in April 2023.

Source: Briefly News