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To rein in inflation now exceeding 10 percent, the highest level in five years, the South African Reserve Bank raised its repurchase (“repo”) rate 50 basis points to 12 percent June 12. The move prompted Congress of South African Trade Unions (COSATU) President Zwelinzima Vavi to threaten that the umbrella labor body will begin rolling strikes July 2 to protest interest any rate increases. Vavi said this strike would come regardless of whether the Reserve Bank raised the repo rate by 50 or 100 basis points (two figures considered by the government), as well as a proposed 53 percent electricity tariff increase.

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