Saftu slams Reserve Bank governor’s interest rates remarks as irresponsible

Saftu’s Trevor Shaku has slammed, as irresponsible, the Reserve Bank Governor, Lesetja Kganyago’s assertions that interest rates don’t affect the poor.

Responding to a question at PSG’s Financial webinar on Thursday, the governor said the unemployed are not affected by the high interest rates.

Kganyago did explain, however, that inflation affects everyone.

Shaku says while the governor’s remarks are correct at face value, the millions of South Africans who are unemployed do bear the brunt of the high interest rates.

He says the high rates affect businesses, which in turn has an impact on everyone.

Social media users have also blasted Kganyago over his assertions, saying he is out of touch with reality.

The Reserve Bank recently kept its main lending rate unchanged at 8.25%, a little comfort for South Africans who are struggling to make bank repayments amid the high cost of living and stagnant salaries. Article by Noni Harris

We have entered the realm of the absurd when the Governor Lesetja Kganyago does not understand the implications of increasing interest rates that directly affects the poor and unemployed. The price of basic services goes up borrowing goes up he has a wrong mentality.

— Andile Lungisa (@mrlungisa) October 6, 2023

Twitter/X headlines can mislead you, plus South Africans re rata fake anger…

What Lesetja Kganyago said and why context matters! pic.twitter.com/kOGkJum68C

— Online Sporting Director (@ThabisoMishack) October 6, 2023

This shouting uncle must stop smoking really. Why he’s misleading poor ppl man

— Fearless Mzize (@MzizeNkosie) October 5, 2023

What a stupid remark.😳 So retrenched home & car owners who are still paying for their homes & cars aren’t affected by high interest rates @KganyagoLesetja?https://t.co/Z4bvQ0fQum

— #RememberMarikana🇿🇦 (@LiberalsAreNaiv) October 5, 2023