Nationalise Sarb now: Nehawu

Johannesburg - The National Education Health and Allied Workers' Union (Nehawu) was scathing in its criticism of the central bank's decision on Tuesday not to cut interest rates, saying it is evidence the Bank does not serve the interests of poor people.

The union said it is "deeply disappointed" by the Reserve Bank's Monetary Policy Committee decision to keep the repo rate unchanged at 7%, meaning the prime interest rate remains at 10.5%.

"The failure of the Reserve Bank to adjust its monetary policy when we have just come out of a devastating economic recession - where thousands lost their jobs - is further proof that it does not serve the interest of the poor people of this country."

Nehawu says it therefore fully supports the proposal contained in a report to the ANC NEC that the SA Reserve Bank should be nationalised.

"The bank's decisions threaten the key developmental priorities identified by the ANC in its 2009 Election Manifesto and they do not reflect the government's identified priorities."

It said the country needs to prioritise employment creation and industrial growth.

"For this to happen, our government must take bold decisions if the commitments that have been made to the poor of this country are to be kept."

"The nationalisation of the bank will ensure that the administration plays a more critical and significant role when it comes to monetary policy because we expect the state to be the sole agent of change. The noises against nationalisation should be ignored because they do not represent the interests of the majority of the South Africans. Nationalise the Reserve Bank Now!"

- I-Net Bridge