High interest rates erode private sector credit growth
Increase in demand for credit by households and corporates in November reaches the lowest since February 2022
03 January 2024 - 13:47
The slowdown in private sector credit demand deepened in November, coming in well below market expectations and reflecting the impact of a cumulative 475 basis points of interest rate hikes since November 2021.
According to data from the Reserve Bank, private sector credit increased 3.84% year on year in November — well below the market consensus of 4.4%, and below 3.94% growth recorded in October...
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