Gloomy news in money supply and credit extension numbers
by Staff Writer
2016-06-30 09:57:39.0
MONEY supply and credit extension in the private sector deepened a trend of slowing growth in May, Reserve Bank data showed on Thursday.
Growth in private sector credit extension, which includes companies and households, has now decelerated for five consecutive months.
It slowed to 6.6% year on year in May, from April’s 7.06%.
Total loans and advanced also grew more slowly, at 6.66% year on year in May, from 6.99% in April. May was the fourth month of slowing growth.
The rate of growth in SA’s broad M3 money supply slowed to 7.79% year on year in May, from 9.02% in April. March is the only month this year in which money supply has grown.
Money supply reflects the amount of money circulating in the economy.
When money supply increases, it typically increases the availability of loans, which individuals and businesses use to make purchases. The higher the money supply growth, the higher the growth in available funds.
Conversely, if money supply growth slows, it can have a negative effect on economic growth.
Credit. Picture: ISTOCK
MONEY supply and credit extension in the private sector deepened a trend of slowing growth in May, Reserve Bank data showed on Thursday.
Growth in private sector credit extension, which includes companies and households, has now decelerated for five consecutive months.
It slowed to 6.6% year on year in May, from April’s 7.06%.
Total loans and advanced also grew more slowly, at 6.66% year on year in May, from 6.99% in April. May was the fourth month of slowing growth.
The rate of growth in SA’s broad M3 money supply slowed to 7.79% year on year in May, from 9.02% in April. March is the only month this year in which money supply has grown.
Money supply reflects the amount of money circulating in the economy.
When money supply increases, it typically increases the availability of loans, which individuals and businesses use to make purchases. The higher the money supply growth, the higher the growth in available funds.
Conversely, if money supply growth slows, it can have a negative effect on economic growth.
