By Following the announcement by the South African Reserve Bank (SARB) to lower the repo rate by 25 basis points, and headline inflation reaching 4.4%, the Democratic Alliance (DA) Leader Mr John Steenhuisen says the economic improvement in the country is attributed to the Government of National Unity (GNU).
Steenhuisen expressed confidence and optimism regarding the performance of the economy in the country. He says the interest rate cuts come at an opportune time for the country’s economy. He says the interest rate cuts are a positive step towards alleviating the pressure on South African households and businesses and reflects the improving economic conditions in the country.
“This announcement comes less than 100 days after the Democratic Alliance joined National Government, through the formation of the Government of National Unity (GNU). Since the inception of the GNU, we have seen a definite increase in confidence in Government, and a sense of hope has been restored in all South Africans. This is evident in the strengthening of the rand, together with lower fuel prices and inflation finally falling below the SARB’s target of 4.5%.
These are encouraging signs that South Africa’s economy is improving, and there will hopefully soon be some relief for South Africans who have been taking strain under the burden of an increasing cost of living,” said John Steenhuisen.
The Governor of SARB Mr Lesetja Kganyago said global economy is improving and central banks in developed countries are also lowering their interest rates and inflation is cooling. However, there are other global factors that affect economic activity such geopolitical conflicts and global warming.
Steenhuisen says they are not oblivious to global factors at play, but the country must recognise the DA as the driver of the GNU policy agenda, of a stronger currency and lower inflation which are tangible results of their impact on policy paving the way for the SARB to shift focus from controlling inflation to stimulating growth.
“Whilst we are hopeful this will be seen as an opportunity to kick-start the economy, we understand that sustained economic growth requires on-going reform and decisive action to address South Africa’s long standing structural challenges. As inflation continues to stabilize, we believe that further opportunities for growth will emerge. However, it is vital that the GNU remains focused on delivering real and impactful reforms to secure a brighter future for all South Africans.
The DA will do all we can to ensure this opportunity is not squandered. Through our growth and jobs policy agenda, we will continue to work with the “builders” to prioritise economic growth, job creation, and fiscal responsibility, and will attempt to ensure that the populist and radical “breakers” are prevented from trashing our Constitution, and any hope of sustained improvements to the lives and livelihoods of all South Africans,” said the DA Leader John Steenhuisen.
