The Reserve Bank will release the credit extension data on Monday, kicking off what promises to be a busy economic week ahead. Total private sector credit extension picked up in May to 6.7% year on year from 5.9% in April. The improvement was driven entirely by demand from the corporate sector. However, First National Bank economist Mamello Matikinca said household credit extension growth was expected to remain weak because households continued to deleverage and they had limited appetite for credit. Investec economist Kamilla Kaplan projects the rate of private sector credit extension at 6.4% year on year in June, saying: "Corporate credit growth should continue to outpace household credit growth. The rate of credit extended to households has been affected by supply-and demand-side considerations. On the supply side, survey evidence showed a renewed tightening in credit criteria applied to households. "Demand-side factors include depressed consumer confidence, high unemployment, wea...
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