MONEY SUPPLY RISES BY 19,33 PERCENT FOR JANUARY.

Money supply (M3) and credit rose by 19,33 percent year-on-year in January, Absa Bank said on Friday. Absa economist John Loos said in a statement this had much to do with a strong monthly rise in net foreign assets, due to the US1,5-billion that the SA Reserve Bank passed to the Treasury. Private sector credit rose year-on-year by 14,10 percent, compared to 12,14 percent in December. "Some of the year-on-year rise is technical, with a January 2001 decline in private sector credit of 1,4 percent," Loos said. "However, the seasonally-adjusted month-on-month rise in private sector credit amounted to one percent, with certain of the consumer credit components still being significant contributors." Unlike the January inflation figures, the M3 and private sector credit growth figures in January do not come as a major shock, Loos said. "Nevertheless, from an inflationary point of view, the increase in year-on-year growth is disappointing." Loos said the rising year-on-year growth in private sector credit demand, coupled to a strong month-on-month seasonally adjusted increase, added to the risk of an interest rate hike in March, following ...