Growth in private sector credit demand slowed further during August (see graph), with household credit demand deteriorating markedly. Household credit demand grew at an annualised rate of less than 8%. The slowdown in credit demand from businesses is much more gradual, but should speed up in coming months. The negative impact of higher interest rates on retail sales and household credit demand is one of the main reasons why the SARB will probably keep interest rates stable at their next meeting, despite the continued high inflation rate.