South Africa Private Credit Growth Slowed to 9.05% in May

South African credit growth slowed to 9.05 percent in May, decelerating from a four-month high in April.

Growth in borrowing by households and companies rose 9.13 percent in the previous month, the Pretoria-based Reserve Bank said on its website today. The median estimate in a Bloomberg survey of 14 economists was 9 percent.

Consumer spending slowed in the first quarter, further limiting economic growth curbed by mining strikes and a lack in demand from Europe for manufactured exports. The Reserve Bank has kept its benchmark interest rate unchanged since July because inflation close to the top of its target of 3 percent to 6 percent prevents policy makers from adjusting interest rates to support a slowing economy, Governor Gill Marcus said two days ago.

The broad M3 measure of money supply rose 9.8 percent in May from a year earlier compared with 10 percent in April, the central bank said. The median estimate in a Bloomberg survey was 9.7 percent.

To contact the reporter on this story: Andres R. Martinez in Johannesburg at amartinez28@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

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