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Johannesburg - Cosatu is "bitterly disappointed" that the SA Reserve Bank (Sarb) has missed an opportunity to bring down interest rates.
Cosatu said that by keeping the repo rate unchanged at 5.5%, the Sarb had missed the perfect opportunity to give a boost to manufacturing industry and job creation.
"This decision starkly illustrates the growing divergence between the policies of the Sarb and the government," it said.
"President Jacob Zuma, in his state of the nation speech in February, said government is 'working within the premise that the creation of decent work is at the centre of our economic policies' and that all government departments, national, provincial and local, will align their programmes with the job creation imperative.
"Yet, today's Sarb statement seems to have ignored this injunction completely."
Cosatu said Sarb's overriding concern had been the possibility of rising inflation, which it said "would probably average 4.7% this year and 5.7% in 2012".
"While, of course, rising inflation cannot be ignored, this small projected increase is a minimal threat to our economy when compared to the huge crisis of a sluggish rate of economic growth, huge levels of unemployment and mass poverty.
"The government's bold policy is totally out of synch with, and in danger of being derailed by, the cautious, conservative, inflation-targeting policy of the Sarb.
"The policy must be changed - urgently," Cosatu said.
Cosatu said that by keeping the repo rate unchanged at 5.5%, the Sarb had missed the perfect opportunity to give a boost to manufacturing industry and job creation.
"This decision starkly illustrates the growing divergence between the policies of the Sarb and the government," it said.
"President Jacob Zuma, in his state of the nation speech in February, said government is 'working within the premise that the creation of decent work is at the centre of our economic policies' and that all government departments, national, provincial and local, will align their programmes with the job creation imperative.
"Yet, today's Sarb statement seems to have ignored this injunction completely."
Cosatu said Sarb's overriding concern had been the possibility of rising inflation, which it said "would probably average 4.7% this year and 5.7% in 2012".
"While, of course, rising inflation cannot be ignored, this small projected increase is a minimal threat to our economy when compared to the huge crisis of a sluggish rate of economic growth, huge levels of unemployment and mass poverty.
"The government's bold policy is totally out of synch with, and in danger of being derailed by, the cautious, conservative, inflation-targeting policy of the Sarb.
"The policy must be changed - urgently," Cosatu said.
