Analysts at the Australian and New Zealand Banking Group (ANZ) offer a quick reaction to the Australian Private Sector Credit data released earlier this Monday.
Key Quotes:
“Private sector credit growth was just 0.2% in August, with investor housing (-0.1% m/m) and other personal credit (-0.2% m/m) weighing on the monthly result. Total housing credit growth slowed to 0.2% m/m, with owner-occupiers posting 0.3% m/m growth, down from 0.5% in July. This saw annual growth slide to a new low of 3.1%.
However, it is likely that housing credit growth has reached its low. The easing in regulatory conditions, as well as rate cuts (both actual and expected) are already seeing the housing market improve. The housing credit impulse has picked up over the past few months – although there was a slight dip in August.
The deceleration in business credit has been more rapid over the last few months.”
Share
