A reduction in interest rates by the South African Reserve Bank (SARB) will help offset the high unemployment rate in South Africa, according to the Motor Industry Staff Association (Misa), further calling on the SARB to reduce interest rates at its meeting on 23 November.
Martlé Keyter, chief executive officer (CEO) of operations at Misa, said cutting interest rates would improve the economy.
“The SARB monetary committee must start cutting interest rates at the next meeting to stimulate the economy and to prevent further job losses. The repo rate increased with 4,75% points to 8,25%, the highest level since 2009. This has had a devastating impact on consumers and businesses,” said Keyter.
Statistics SA (Stats SA) has indicated that the 399 000 people hired in the third quarter of this year decreased the unemployment rate to 32%, for the first since the third quarter of 2020.
However, Dr Roelof Botha, economic advisor to the Optimum Financial Services Group, remarked that the improved employment rate was still not a relief to jobless members of South Africa’s 60 million population as revealed by the 2022 Census.
He predicted that the unemployment figure would worsen in the first quarter of 2024, when the 2023 matric class entered the labour market if they could not further their studies.
