Free Trial

Australia Y/Y Pvt Sector Credit Growth Picks Up Pace in Aug

     SYDNEY (MNI) - Private-sector credit data for August published by the
Reserve Bank of Australia on Friday:
                               August          July        August          July
-------------------------------------------------------------------------------
                         % Change m/m  % Change m/m  % Change y/y  % Change y/y
Total Credit                     +0.5          +0.5          +5.5          +5.4
Housing                          +0.5          +0.5          +6.6          +6.6
-Owner-occupier Housing          +0.5          +0.5          +6.3          +6.2
-Investor Housing                +0.4          +0.4          +7.3          +7.4
Business                         +0.5          +0.5          +4.5          +4.2
Other Personal                   -0.2           0.0          -1.1          -0.8
     FACTORS: Total private-sector credit growth rose 0.5% m/m in August, but
the y/y pace picked up slightly to the highest so far this year. Housing credit
remained the main contributor to total credit, with business credit make a
strong contribution with the sixth straight months of increase. The y/y pace of
business credit was the highest since January this year. Personal credit growth
remained a drag, falling 0.2% m/m, and y/y growth down the most in the 20 months
of decline. Investor mortgage growth rose at the same pace as July, despite the
latest month seeing a larger switch from investor to owner-occupier mortgages of
A$1.7 billion, the highest since February 2016. Partly explaining the continued
switch is the rise in mortgage rates for investor loans in the past few months. 
     TAKEAWAY: The data shows private sector credit growth has slowed from the
6%-plus y/y growth pace posted in 2016 and while the latest month saw a small
pickup, it was due to a bigger contribution from business credit which is a
positive. Overall, the continued growth in mortgages shows the Reserve Bank of
Australia needs to keep a close watch on housing activity trends. 
--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com
[TOPICS: MTABLE,MALDA$,MALDS$,M$A$$$,M$L$$$,MT$$$$]

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.