South Africa’s private-sector credit growth slowed to 7.41% year-on-year in July from a revised 7.8% in June, data from the South African Reserve Bank (SARB) showed Wednesday. The moderation, which covers lending to households and corporations, came as elevated borrowing costs, persistent inflation and weak economic momentum restrained demand. The SARB has held its repo rate at 8.25% since May 2023. Monthly credit growth also eased, although the initial release did not provide a seasonally adjusted monthly figure, while broader M3 money-supply growth declined in line with the credit trend. The slowdown illustrates how restrictive monetary policy can curb inflation by reducing borrowing, while also limiting household consumption, business investment and potentially job creation. South Africa’s economy grew 0.6% in the first quarter of 2024. The weaker credit figures may strengthen the case for rate cuts later in 2024 if inflation moves toward the midpoint of the SARB’s 3%-6% target range, but the central bank has said decisions will remain dependent on inflation expectations and global financial conditions. The SARB’s September policy meeting will be closely watched, although no immediate rate change is expected at that meeting.