The Congress of South African Trade Unions (COSATU) urges the South African Reserve Bank (SARB) to cut the repo rate by at least 25 basis points at its much anticipated Monetary and Policy Committee (MPC) meeting on Thursday 29 January 2026.
Workers have struggled to cope with the rising costs of living, with electricity and transport prices far exceeding the overall inflation rate. All too often callous employers have resisted paying workers a living wage or ensuring their meagre salaries keep pace with inflation.
Whilst the first phase of the Two-pot pension reforms initiated by COSATU with the support of the African National Congress led government has released over R60 billion into the pockets of nearly 4 million workers, reports from the National Credit Regulator paint a depressing picture of the overwhelming majority of workers remaining heavily indebted.
Inflation has been continuously falling and at 3.5% currently, is well within SARB’s target range. SARB has ample room to provide relief for the working class and to give the economy badly needed stimulus after a very difficult year and the barrage of repo rate hikes since the war in Ukraine started in 2022 and international oil prices spiked.
It is critical that the SARB stand with the working class and cut the repo rate by at least 25 basis points tomorrow. This will provide invaluable comfort to millions of households, help workers pay their debts and inject cash into an economy desperate of stimulus.
We cannot afford to continue suffocating an economy that has been stumbling along 1% growth for over a decade, more so with growth projections for 2026 a mild 1.4% due to the global tariffs and trade turmoil.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za
