MONDAY, 11.30AM
LATEST Reserve Bank figures show that both credit extension and money supply growth finally began moving in the same direction, with both figures falling between April and May, leading to expectations of at least one interest rate cut within the next few months.
Private domestic credit extension grew by an annualised 16,57% in May, down from April’s 17,4%, while money supply growth fell to 15,40% from 15,44%. The latest figures have boosted the positive sentiment generated by last week’s inflation and foreign trade figures.
Meanwhile, the three-month T-bill rate dropped more than 20 basis points on Friday to 15,24%, from the previous week’s 15,47%, a sure sign that commercial banks are expecting an interest rate cut soon.