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Definition

An economic indicator which measures changes in bank lending to the domestic private sector year-on-year. This is a key indicator of how consumers and businesses are feeling. When they lack confidence, they tend to borrow less and vice versa. Confidence levels are critical. Borrowing is also a function of interest rates - so if the Reserve Bank is raising the repo rate that will tend to curtail credit extension and vice versa. The private sector credit extension figures are published monthly and can be viewed at: <a href="https://tradingeconomics.com/south-africa/private-sector-credit">https://tradingeconomics.com/south-africa/private-sector-credit</a>

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