Growth in South Africa’s private sector credit extension slowed to 6.23% year-on-year in September 2026. The rate cooled from a revised 7.47% expansion recorded in August.
According to official monetary metrics released by the South African Reserve Bank (SARB), the September expansion marks the softest year-on-year growth rate in private sector credit since September 2025.
The deceleration reflects tightening credit conditions and cooling borrowing demand across households and corporates. Tight monetary policy continues to pass through the real economy, dampening appetite for mortgage advances and overdraft facilities.
The slowdown follows the SARB Monetary Policy Committee’s decision to raise the benchmark repo rate by 25 basis points to 7.25% in September. This increased prime lending rates to 10.75% to curb persistent inflationary pressures.
The cooling trend contrasts with early 2026, when private sector credit growth reached multi-year highs of 8.83% in January. Borrowing activity is now realigning with broader economic moderation.
Financial analysts expect total private credit expansion to remain constrained through the final quarter of 2026. Higher borrowing costs and cautious corporate balance sheet strategies weigh on loan originations.
