Low household credit and mortgage balances growth up to August 2017

Outstanding credit balances in the South African household sector increased by 3,4% year-on-year (y/y) to R1 520,2 billion in the period January to August  2017. Growth in outstanding household mortgage balances (R913,1 billion, with a share of 78,1% in total household secured credit balances and 68,8% in total private sector mortgage balances) remained largely stable 3,1 y/y up to end-August.

Against the background continued low economic growth, risks to the inflation outlook, low consumer confidence and expected stable interest rates into 2018, growth in household credit balances, including mortgage balances, is forecast to remain largely subdued up to year-end.

Read more here: Absa – credit and mortgage advances (Aug 2017)