MNI 5 Things: RBA Pvt Sector Credit Boosted By Business Loans

By Sophia Rodrigues

     SYDNEY (MNI)  - Below are the five key observations we made from private

sector credit data for March published by the Reserve Bank of Australia on

Monday: 

     --Business credit rose sharply in March, up 0.8% m/m to mark the highest

pace since June last year and thus contributed to an acceleration in overall

credit. Total private sector credit rose 0.5% m/m, ahead of MNI median forecast

for a 0.4% rise, taking y/y growth to 5.1% after spending three months below the

5% level.

     --Investor mortgage credit growth continued with its recent subdued trend,

rising 0.2% m/m for the fifth straight month and resulted in further slowing in

the y/y pace to +2.5% from +2.8% in February.

     --Owner-occupier mortgage growth slowed slightly in March, up 0.6% m/m

compared with +0.7% in March but y/y growth remained unchanged at +8.1%. Total

housing credit growth remained unchanged at +0.5% m/m, though y/y pace slowed to

+6.1%, matching a rate last seen in April 2014.

     --Other personal credit fell 0.1% m/m, posting y/y fall for 27 straight

months.

     --Despite some slowing, household debt remains high and the rate of growth

is higher than growth in personal income. For the RBA's monetary policy this

still remains a risk factor given the uncertainty it poses for consumption

growth.

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

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