JOHANNESBURG – Growth in demand for credit by South Africa’s private sector slowed in February, central bank data showed yesterday, supporting the case for further easing of monetary policy.
The central bank cut the repo rate by 100 basis points to 9,5 per cent last week, adding to 150 basis points worth of reductions since December, to boost the economy.
The central bank said yesterday growth in demand for credit by the private sector slowed to 11,05 per cent year-on-year in February, from 11,85 per cent in January.
During the same period, growth in the broadly defined M3 measure of money supply braked to 13,17 per cent, compared to a revised 13,92 per cent previously.
Analysts said a downtrend in credit growth supported a case for more interest rate cuts.
– Nampa-Reuters
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