PRETORIA Oct 30 (Reuters) – There are no signs of a credit
bubble in South Africa despite arise in unsecured lending,
Reserve Bank Deputy Governor Lesetja Kganyago said on Tuesday.
“Credit that grows at an average of around 7 percent when
inflation is at 5.5 percent cannot by any measure be seen as
bubble. Unsecured lending is such a small component of overall
credit,” Kganyago said in response to a question at a monetary
policy forum.
Unsecured loans in South Africa surged by 21 percent to $43
billion in the year to June, central bank statistics show, but
are still about a tenth of overall lending.
(Reporting by Stella Mapenzauswa; writing by Helen
Nyambura-Mwaura)
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