The South African Federation of Trade Unions picketed outside the South African Reserve Bank situated in Tshwane CBD against neoliberal monetary policy.
They are pegged against increased interest rates which favour free market capitalism and reduce government expenditure. As a result of the rates, taxpayers are suffocated and inflation increases.
During the week interest rates have been raised by 50 basis points, taking the repo rate to a relatively high 8.25%, meaning that the cost of living will increase.
National Spokesperson of SAFTU, Trevor Shaku said they oppose national interest rates as a method of fighting inflation. This is because they do not think it is a humane method of fighting inflation. “The government should have a different method to bring Rand back to power”, said Shaku.
Interest rates have been implemented since November 2021 and inflation continues to rise.
Therefore, the problem is not the economy’s demand and supply. Due to the SARB’s use of one method for economic recovery, price instability is expected to persist.
The government will benefit from hiking interest rates with subsidiaries while the poor remain poor and the rich become richer. Chairperson of the National Union of Public Allied Workers Sibusiso Nkasa added
“We come from Covid where most people are unemployed and we think interest rates are a direct attack on indebted people”. Workers drive the economy as they spend. Unfortunately, they will have to spend more to boost the economy and their lifestyle.