FROM THE OFFICE OF THE CHIEF EXECUTIVE OFFICER
MEDIA STATEMENT


TO: PRINT AND ELECTRONIC MEDIA HOUSES
FROM: KGANKI MATABANE
DATE: 23 May 2019

SUBJECT: BBC welcomes the South African Reserve Bank’s decision to keep the repo rate unchanged

The Black Business Council (BBC) welcomes the South African Reserve Bank’s Monetary Policy Committee (MPC) decision to keep the repurchase (repo) rate unchanged at 6.75 percent as this will bring a much-needed relief for consumers, especially in the context of a low economic growth with high unemployment rate.

Rates were last hiked in the last quarter of 2018 (November 2018) when the MPC introduced a 25-basis point hike that raised the rate to the current 6.75 percent.

“We welcome the decision though we would have preferred and expected a reduction on the repo rate, in view of the falling rate of inflation and the economy in need of a boost. This decision offers breathing room to our members, who are in the main Small, Medium and Micro-sized Enterprises (SMMEs) with short and long-term capital loans. As such, we must commend the SARB’s decision in the midst of inflationary pressures that have been forecasted in the months ahead.” says BBC President Sandile Zungu.

The first quarter of the year has been particularly taxing on the pockets of citizens with three consecutive fuel hikes and increases in electricity tariffs which have taken a heavy toll on the consumers.

“The unchanged repo rate will give government alongside business, labour and community the necessary window to implement mitigating reforms to address our slow growing economy” concluded Zungu.

ENDS

About the Black Business Council

The Black Business Council (BBC) is the over-arching confederation that represents black professional, business associations and chambers. The primary purpose of the BBC is to lobby government on policy related matters and to play an advocacy role where policies are in place in order to accelerate the participation of black business in the mainstream economy.