FX.co ★ S. Africa Private Sector Credit Growth Moderates

South Africa's private sector credit growth moderated in October from a near seven-year high, data released by South African Reserve Bank showed on Tuesday.

Private sector credit posted an annual growth of 9.34 percent, slightly slower than the 9.74 percent increase in September, which was the strongest since December 2015. M3 money supply expanded 9.82 percent from the last year in October after rising 8.75 percent in September.

Likewise, the increase in narrow measure M1 climbed to 8.08 percent from 6.08 percent in the previous month.

The central bank has raised its key interest rate over the last seven consecutive policy sessions to anchor inflation expectations firmly within the target band. At the November meeting, the bank hiked the rate by 75 basis points. By raising key rates, the bank aims to support credit demand in the near term.