Build One South Africa (BOSA) welcomes today’s decision by the South African Reserve Bank’s Monetary Policy Committee (MPC) to lower the interest rate by 25 basis points to 7%.
This move brings much-needed relief to millions of South Africans struggling under the financial noose of high debt costs, rising living expenses, stagnant wages, and the exorbitant cost of living that continues to weigh heavily on households
On average, citizens are using 65% of their net income to service debt. 76% of South Africans regularly run out of money before the end of the month, and more than half run out halfway through the month.
Across all elements of society, citizens are being pressured from all sides as the economy struggles to grow, unemployment increases, and the cost of borrowing remains high.
BOSA has consistently argued that economic recovery requires bold and coordinated action. While monetary policy alone cannot carry the weight of economic reform, it must be aligned with efforts to cut red tape, support small businesses, invest in infrastructure, and root out corruption.
We urge government to seize this moment to accelerate structural reforms, especially in energy, transport and education, and to implement pro-growth fiscal policies that complement this monetary easing.
Ultimately, the best remedy to address struggling households is to put more jobs in homes. Just 52.4% of households’ main source of income is salaries and wages. This needs to be increased, and to do so we must put at least a job in every home.
Media Enquiries:
Roger Solomons – BOSA Spokesperson – 072 299 3551