Today's Labour News

The Citizen reports that consumers heaved a collective sigh of relief on Thursday when the SA Reserve Bank (SARB) announced its decision to keep the repo rate at its current level of 8.25%.

The decision came after Statistics SA announced on Wednesday that the inflation rate decreased by almost one percentage point in June to 5.4%, from 6.3% in May. The SARB’s decision means that the prime lending rate will remain at 11.75%. Three members of the bank’s Monetary Policy Committee voted to keep rates on hold and two preferred an increase of 25 basis points. SARB governor Lesetja Kganyago indicated that near-term prospects for the global economy were broadly unchanged, with inflation easing and growth forecasts stable, but the longer-term economic outlook clouded by risks to the inflation trajectory, ongoing geopolitical tensions and the effects of climate change. Kganyago warned that while SA’s economic conditions appeared to have improved, the longer-term outlook mirrored the uncertainty of the global environment, with prices for commodity exports continuing to weaken, while energy supply remained unreliable. Stronger El Nino conditions also threatened the agricultural outlook. On inflation, Kganyago said: “Despite recent easing in some food price components, domestic food price inflation is still elevated at 11% in June and the risk of drier weather conditions in coming months has increased. In the absence of sustained and consistent increases in energy supply, electricity prices continue to present clear inflation risks.”

• Read the full original of the report in the above regard by Ina Opperman at The Citizen
• Read too, Repo rate remains unchanged at 8.25%, at TimesLIVE
• En ook, Nuus oor onveranderde rentekoers verwelkom, by Maroela Media

Get other news reports at the SA Labour News home page