Reserve Bank’s efforts to boost borrowing are still to bear fruit
Private-sector credit extension slowed to its lowest level since January, despite interest rates at near 47 year lows and the Covid-19 loan guarantee scheme
The SA Reserve Bank’s efforts to support the economy and prop up lending — including record low interest rates — are yet to bear fruit with both households and companies reluctant to take on more debt.
Private sector credit extension slowed for the fourth consecutive month in July, data from the Bank showed on Monday. That’s despite the central bank having cut interest rates to their lowest in almost half a century and loosened regulations to make it easier for commercial banks to lend in the wake of the Covid-19 outbreak and national lockdown.