The Federation of Unions of South Africa (FEDUSA) is concerned over the raising of interest rates and the effects this will have on the economy.  The Federation explains how this will hit consumers hard and leave them with even less expendable cash to invest in the economy.

The South African Reserve Bank (SARB) Monetary Policy Committee (MPC) announced this afternoon that it had decided to "raise the repurchase rate by 50 basis points to 5,5 per cent per annum as of 30 January 2014".

"We are both surprised and disappointed about this decision," said FEDUSA Deputy General Secretary Krister Janse van Rensburg.  "Although we know of the inflationary and exchange rate challenges faced by our economy, we must also understand that consumers are really battling out there.  Most working people have several loans, at least for essential items like a house or a motor vehicle.  This further increase in cost of living, on top of recent mammoth increases in fuel, energy and food prices will certainly hit them hard," he added.

"Although FEDUSA agrees that inflation is enemy number one, and that we need to protect savings of retired persons and private individuals, as FEDUSA our interest will always be with the working women and men in our country.  On macroeconomic level we have consistently campaigned for the MPC to have due consideration for matters like economic growth and unemployment, and we fear that this decision will negatively impact on these issues as well," concluded Janse van Rensburg.

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FEDUSA is the largest politically non-aligned trade union federation in South Africa and represents a diverse membership from a variety of sectors in industry.  See www.fedusa.org.za for more information.

For more information:

Krister J van Rensburg (Deputy General Secretary)

082-444-4548

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