Credit extension to the private sector (PSCE) grew at a rate of 1.49 percent year-on-year (y/y) in September from 2.34 percent in August, the South African Reserve Bank (SARB) said on Thursday.

The rate of growth of South Africa's broad M3 money supply measure rose by 4.00 percent in the year to end-September from 5.49 percent in the year to end-August.

The rate of growth in South African credit extension to the private sector (PSCE) was expected to have increased at 2.10 percent year-on-year (y/y) in September, according to a survey by I-Net Bridge.

South Africa's broad M3 money supply aggregate growth rate, meanwhile, was expected to have increased in September at 4.80 percent y/y.

Forecasts among the economists surveyed for PSCE ranged from 1.2 percent to 2.3 percent, while the range of forecasts for M3 was from 3.5 percent to 5.4 percent at the top of the range.

Nedbank senior economist Carmen Altenkirch said: "It is an exceptionally weak figure, declining 0.6 percent month-on-month for the second consecutive month.

"It shows how very weak demand for credit is from the consumer. We still expect another 50 basis points in cuts either this year or very early next year. We believe the recovery will probably disappoint."

I-Net Bridge

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