SA’s private sector credit growth slowed in February, broadly in line with market forecasts. Private sector credit growth decelerated to an annualised 5.26% in February, from 5.52% in January, according to the Reserve Bank data that was released on Thursday. The market had expected credit extended to the private sector to slow to 5.2%. M3 money supply, the Bank’s broadest measure of how much money is circulating in the economy, slowed to 6.63% year on year from 7.91% in January. When money supply increases, it typically increases the availability of loans, which individuals and businesses use to make purchases. The higher the money supply growth, the higher the growth in available funds. Conversely, if money supply growth slows, it can have a negative effect on economic growth.
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