Australia RBA: Pvt Sector Credit Growth Up on Business Loans

--Private Sector Credit +0.6% M/M in June

     SYDNEY (MNI) - Private-sector credit data for June published by the Reserve

Bank of Australia on Monday:

                                 June           May          June           May

-------------------------------------------------------------------------------

                         % Change m/m  % Change m/m  % Change y/y  % Change y/y

Total Credit                     +0.6          +0.4          +5.4          +5.0

Housing                          +0.5          +0.6          +6.6          +6.6

-Owner-occupier Housing          +0.5          +0.6          +6.2          +6.1

-Investor Housing                +0.4          +0.5          +7.4          +7.5

Business                         +0.9          +0.3          +4.4          +3.1

Other Personal                   -0.1          -0.1          -1.4          -1.4

     FACTORS: Total private-sector credit accelerated in June, marking the

highest m/m rise this year thanks to an increase in business credit that was the

highest since December 2016. The latest month saw an easing in mortgages growth

as investor credit slowed to a pace last seen in July last year, and

owner-occupier loan growth also eased. The switch from investor to

owner-occupier mortgages continued, with A$1.3 billion worth of mortgages moving

in June compared with A$1.4 billion in May. Partly explaining the continued

switch is a rise in mortgage rates for investor loans in the past few months. 

     TAKEAWAY: The rise in business credit in June and a slowing in investor

mortgages are both likely to please the Reserve Bank of Australia. The data also

showed other personal credit growth continues to ease. While this is good for

household balance sheets, it also poses downside risk for the RBA's household

consumption growth forecast. 

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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