Retail sales growth slowed to 8,0% year-on-year in February at constant prices, Statistics SA said today.

In the three months to the end of February, sales also rose by 8,0% compared to the same period the previous year. The annual increase for January was revised to 9,9% from 9,4.

Analysts said the slower growth rate would marginally ease the pressure to raise interest rates although it was too early to write off the possibility of another rate hike in the future.

"It is positive for interest rates that they (retail sales) seem to have come down a bit, but the data seems to be pretty choppy. December was positive (lower growth) but the January figure was negative," said Nyiko Mageza, interest rate strategist at ABSA Capital.

"So it is probably a bit early to say that we are seeing any decisive signs of a slowdown. This has no big implications for interest rates."

The rand was largely steady at R7,0555 against the dollar compared to R7,0540 just before the data was released, while the yield on the benchmark R157 government bond was at 7,690% from 7,695%.

SA’s economic growth has in recent years largely been driven by boisterous consumer demand which has showed few signs of slowing despite higher interest rates. The central bank raised its key repo rate by 200 basis points to 9,0% in four stages last year to tame rising inflationary pressures.

Although the monetary policy committee has kept rates on hold at two consecutive meetings this year, Reserve Bank governor Tito Mboweni has warned that high, credit-driven consumer demand growth remains a concern.

Credit extension to the private sector accelerated to 26,12% year-on-year in February from 24,83% in January and household debt stands at a record 73% of disposable income.