On Thursday, Reserve Bank Governor Lesetja Kganyago announced that interest rates have been cut by 25 basis points.

The party has rejected the reduction. It says the cut should have at least been by 50 basis.

In a statement the party says the Reserve Bank has outsourced its thinking to the West and the financial sector, with interest rates driven by profit rather than the needs of the people.

Tambo elaborates. “The inflation in South Africa is causing the people of South Africa to in a very high debt driven environment. Where we paying our loans, our home loans and our cars loans at a much higher rate. And this has been a misguided policy by the Monetary Policy Committee of South African Reserve Bank where they have increased the inflation under the pretence that there’s a high demand and the need for it, but actually it isn’t for the benefit of the financial sector. And we know that South Africa right now the economy needs a massive cash injection, it needs to create jobs. So there were necessary means to cut the basis points by much high rates in order to alleviate the economic problem that is confronting people”.


--SABC--