Latest data up to end-August 2021, show that financial conditions have become slightly looser month-on-month, declining by 2%. The average value of the FCI over the past 12 months was still up 5.7% compared with the average for the previous 12 months, and compared with only the month of August 2020, it was up nearly 20%. These increases were mostly owing to the rise in the value of the rand, the sharp increase in companies’ earnings yields, and the large decline in money supply growth vis-à-vis nominal GDP growth.
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