Signs of moderation in private sector credit demand growth are becoming more evident. Household credit demand is showing the impact of higher interest rates and the increased debt burden (see graph). Growth in credit demand from businesses is also showing signs of slowing down. The increase in interest rates is beginning to have the desired effect on credit demand. However, with the exogenous factors driving inflation higher plus the threat of huge wage increases, the SARB is focusing on inflation expectations and is expected to hike interest rates again in June.