S.A : Private Sector Credit Declines
Demand
for credit by private sector operators in South Africa fell for
the second consecutive month in November 2009.
Data from the Central Bank showed that credit demand fell by
1.59 per cent year-on-year in November after a contraction
of 0.42 per cent in October, the first since 1966.
This showed that the economy was still struggling despite
exiting recession.
Africa's biggest economy emerged from its first recession in
almost two decades in the third quarter.
During the same period, growth in the broadly defined M3 measure
of money supply slowed to 0.58 percent compared with
2.67 per cent growth in October.
Recovery is expected to be slow, with household and company
finances remaining tight.
Annual M3 growth was seen at 0.45 per cent.
The Reserve Bank has left rates unchanged at 7.0 per cent
at its last three policy meetings after reducing them by a
cumulative 500 basis points between December 2008 and
August 2009, to help the economy.
The cuts unwound rate increases implemented between June 2006
and June 2008 as the bank sought to tame inflation.
NAN/Yinka
