Build One South Africa (BOSA) notes today’s decision by the South African Reserve Bank’s Monetary Policy Committee (MPC) to raise the interest rate by 25 basis points.
This increase will place even greater pressure on millions of South Africans already struggling under the financial burden 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.
Citizens are being pressured from all sides as the economy struggles to grow, unemployment increases, and the cost of borrowing remains high. Today’s decision will further increase repayment costs for households, homeowners, and small businesses already operating under severe strain.
BOSA recognises the Reserve Bank’s constitutional responsibility to protect price stability and contain inflationary pressures. However, today’s decision is a sobering reminder that South Africa cannot rely on monetary policy alone to rescue the economy.
BOSA has consistently argued that economic recovery requires bold and coordinated action. While the Reserve Bank must act within its mandate, government has failed to create the conditions for sustained economic growth through meaningful structural reform.
We urgently call on government to accelerate reforms in energy, transport, policing, and education, while aggressively cutting red tape, supporting small businesses, investing in infrastructure, and rooting out corruption.
Without economic growth, South Africans will continue to face rising costs with shrinking opportunities.
Ultimately, the best remedy for struggling households is not temporary relief measures, but jobs and economic expansion. Currently, just 52.4% of households’ main source of income is salaries and wages.
This must increase, and to do so South Africa must pursue a growth agenda capable of putting at least one job in every home.
Media Enquiries:
Roger Solomons
BOSA Spokesperson
072 299 3551