PRIVATE sector credit growth decelerated to an annualised 6.15% in August, from 6.78% in July, according to the Reserve Bank data released on Thursday."Credit growth is likely to remain weak in the short term, given the weak economic activity and the poor outlook," Nedbank economists said in a note."The figures indicate that economic activity remains subdued. Recent inflation developments have been positive. We forecast that the Reserve Bank will probably pause the hiking cycle until January next year."M3 money supply, the Bank’s broadest measure of how much money is circulating in the economy, grew 5.48% year on year, from 4.4% in July.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.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.