South Africa: Debt, Spending Levels Suggest New Rate Hike

Johannesburg — GROWTH in household spending slowed sharply in the first quarter of this year, but consumer spending remained buoyant and household debt scaled a new peak, leaving the door open for another increase in interest rates this year.

Gross domestic expenditure -- which measures demand from companies, households and the government -- grew an annualised 5,75% from January to March compared with 12,25% in the final quarter of last year, the Reserve Bank said in its June quarterly bulletin.

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