COSATU urges Reserve Bank to cut repo rate amid growth concerns

The Congress of South African Trade Unions (COSATU) has called on the South African Reserve Bank’s Monetary Policy Committee (MPC) to cut the repo rate by 25 basis points at its meeting on Thursday.

The MPC is set to announce its first decision of the year on policy rates at a highly anticipated briefing at 3:00 PM. While the central bank weighs its options, economists remain divided on the outcome. Some forecasters believe the bank will hold the benchmark rate at 6.75%.

READ: SA Reserve Bank to announce first repo rate decision for 2026

Patrick Buthelezi, an economist at Sanlam Investments, suggests the committee may face a difficult deliberation.

“Overall, given the strong arguments for both holding the repo rate steady for now and cutting, the MPC is likely to be divided on the decision," says Buthelezi. "We expect the MPC to maintain a cautious approach, even as it remains biased towards easing this year.”

However, COSATU argues that maintaining the current rate is a missed opportunity for an economy in desperate need of a boost. Matthew Parks, COSATU’s Parliamentary Coordinator, expressed concern that a pause would further hinder national development.

“We cannot afford to continue suffocating an economy that has been stumbling along 1% growth for over a decade,” Parks stated. “This is especially critical with growth projections for 2026 at a mild 1.4% due to global tariffs and trade turmoil.”