DA welcomes drop in interest rates – Alf Lees

Party says this is timely relief for South Africans following VAT increase

DA welcomes drop in interest rates

28 March 2018

The DA welcomes today’s announcement by the South Africa Reserve Bank’s Monetary Policy Committee (MPC) to cut the interest rate by 25 basis points. This is a timely relief to many South Africans grappling with debt and a rising tax burden, especially Value Added Tax (VAT).

The MPC announcement follows the decision on Friday by credit rating agency, Moody’s, to hold South Africa’s sovereign credit rating at “Baa3”, with a “stable outlook”. These ‘green offshoots’ in the economy require a pragmatic economic programme of action by President Cyril Ramaphosa and Finance Minister Nhlanhla Nene to ensure that momentum is not lost.

The rand has been the major beneficiary of the improving economic outlook and its appreciation against major currencies could help ease inflationary pressures, providing another welcome cushion for consumers.

Improving sentiment in the economy must not be side-tracked by populist calls to expropriate land without compensation, which can only scare investors away. It would be reckless if the prevailing economic goodwill is sacrificed to serve the narrow political interests of the ANC and EFF.

Issued by Alf LeesDA Deputy Shadow Minister of Finance, 28 March 2018