It's quite a bit higher than the market had been expecting. The implication normally is when you have a high M3 number it indicates upward pressure on interest rates down the line, but I don't think this is the case because you have a situation where credit demand is very much under control and consequently it just gives us a bit of a neutral picture as far as interest rates are concerned. Net other assets and liabilities is up by 10.3 billion rand and a large chunk of that is probably forex losses by the Reserve Bank. The credit number shows an increase in demand, but it's not excesssive so it's not a problem for interest rates. I still don't see any changes in prime.
People are still willing to borrow money to finance spending.
At least for the short to medium term, the better than expected PSCE augurs well for economic growth. However, the increase in PSCE should be carefully monitored because if this trend continues it might eventually exert upward pressure on inflation, which could put any possible interest rate cut at risk.