Credit extension to the private sector (PSCE) grew at a negative rate of -0.42 percent year-on-year (y/y) in October from 1.49 percent in September, the South African Reserve Bank (SARB) said on Monday.

The rate of growth of South Africa's broad M3 money supply measure rose by 2.67 percent in the year to end-October from 4.00 percent in the year to end-September.

The rate of growth in South African credit extension to the private sector (PSCE) was expected to have increased at 0.2 percent year-on-year (y/y) in October, according to a survey by I-Net Bridge.

South Africa's broad M3 money supply aggregate growth rate, meanwhile, was expected to have increased in October at 3.3 percent y/y.

Forecasts among the nine economists surveyed for PSCE ranged from -0.2 percent to 0.8 percent, while the range of forecasts for M3 was from 2.4 percent to 3.7 percent at the top of the range.

Standard Bank economist Shireen Darmalingam said: "We expected a deceleration, but not as quickly - we only expected it toward the end of the year. The impact of the interest rates is starting to have an effect.

"Consumers have become a lot more responsible and aware of their financial position. The fact that they were over-indebted means they would more likely start repaying debt and getting into a clearer financial position before taking on more debt. We see interest rates flat for now, with the next move up in June next year."