The value of outstanding credit balances in the South African household sector was marginally lower at the end of April 2015 compared with end-March, with year-on-year growth that slowed down to 3,3% from 3,6% in March. This was the net result of lower growth in household unsecured credit balances and growth in secured credit balances that was somewhat higher, supported by an increase in the value mortgage balances.
Factors such as the state of household finances, credit-risk profiles, consumer confidence, inflation and interest rates will remain important regarding the demand for credit. Headline consumer price inflation is forecast to rise in the rest of the year, with interest rates to be hiked before year-end and through 2016, which will contain growth in household credit. Read more here – ABSA Credit and mortgage advances (Apr 2015)