Johannesburg - Credit extension to the private sector (PSCE) grew at a rate of 6.18% year-on-year (y/y) in April from 5.13% year-on-year (y/y) in March, the South African Reserve Bank (Sarb) said on Tuesday.
The rate of growth of South Africa's broad M3 money supply measure rose by 6.0% y/y in April from 6.53% y/y in March.
The rate of growth in PSCE was expected to have registered 5.6% y/y, according to a survey by I-Net Bridge and M3 was expected to have increased at 6.9% y/y.
South Africa's total domestic credit extension grew at a rate of 4.69% in April from 3.63% y/y in March.
Total loans and advances, which is PSCE excluding investments and bills discounted, recorded 6.03% y/y growth in April from 5.31% y/y growth in March.
The Sarb also indicated that its international liquidity position rose to $46.039bn in April from $44.725bn in March.
Overall credit was at 22.3% in June 2006 when interest rates were hiked that year. Money supply dipped below the crucial 20% mark in July 2008 for the first time since November 2005.
Rates were cut three times in 2010 to a 30-year low of 5.5% in an attempt to boost the economy. Credit numbers are an important indicator the central bank watches to determine demand signals.
The rate of growth of South Africa's broad M3 money supply measure rose by 6.0% y/y in April from 6.53% y/y in March.
The rate of growth in PSCE was expected to have registered 5.6% y/y, according to a survey by I-Net Bridge and M3 was expected to have increased at 6.9% y/y.
South Africa's total domestic credit extension grew at a rate of 4.69% in April from 3.63% y/y in March.
Total loans and advances, which is PSCE excluding investments and bills discounted, recorded 6.03% y/y growth in April from 5.31% y/y growth in March.
The Sarb also indicated that its international liquidity position rose to $46.039bn in April from $44.725bn in March.
Overall credit was at 22.3% in June 2006 when interest rates were hiked that year. Money supply dipped below the crucial 20% mark in July 2008 for the first time since November 2005.
Rates were cut three times in 2010 to a 30-year low of 5.5% in an attempt to boost the economy. Credit numbers are an important indicator the central bank watches to determine demand signals.