The value of South Africa’s gross gold and forex reserves rose US$602 million to $42.2bn at the end of June. Forex reserves were US$513 million higher at US$34.6bn. The slightly higher gold price saw the value of gold reserves increase by US$88 million to US$5bn. Net reserves improved US$261 million to the end of the month.
Private sector credit growth improved in May and turned positive for the first time since September 2009. Household credit growth continued to increase while growth in corporate credit was less negative. The improvement in credit growth adds weight to the argument that the local interest rate cycle has probably reached its lower turning point.