Cape Town - The Congress of SA Trade Unions (Cosatu) said on Friday that it is shocked by and totally condemns the decision by the SA Reserve Bank's (Sarb's) Monetary Policy Committee (MPC) to increase the repo rate by 25 basis points (bps).
Cosatu regards the latest rate hike as a reckless decision that will cause "untold harm to the beleaguered workers and the poor majority". In the federation's opinion this move will further slow economic growth and stifle any chances of employment creation.
"Workers are battling to make ends meet and provide for their families and the economy is shedding thousands of jobs in all sectors. Their measly wages are not keeping up with escalating prices of basic necessities," Cosatu said in a statement.
"Food, water, fuel and electricity prices are repealing the wages of the working poor."
Cosatu emphasised that SA needs economic growth to help address unemployment, deepening poverty levels and growing inequality. It said it does not understand how making the cost of borrowing money and ultimately of doing business more expensive will help to stimulate the economy.
Cosatu said it wants to see Sarb "nationalised".