MNI 5 Things: RBA Pvt Sector Credit Y/Y Rise Stays Below 5%

By Sophia Rodrigues

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

Sector Credit data for February published by the Reserve Bank of Australia on

Thursday: 

     --Private sector credit rose 0.4% m/m in February, ahead of MNI median

forecast for a 0.3% rise but this followed a downward revision in January growth

to +0.2% from +0.3%. In y/y terms, credit growth rose 4.9% for the second month

in a row. A combination of slowing business credit, sharp slowing in investor

mortgage credit partly offset by rise in owner-occupier mortgages, and continued

fall in other personal credit has led to private sector credit growth slowing

below the 5% annual rate. This is mainly a result of steps by regulators to slow

investor housing loan growth and improve lending standards, and subdued

household income growth.

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

rising 0.2% m/m in February compared with +0.1% in January. In y/y terms,

investor housing loan growth rose 2.8%, falling below the +3.0% growth for the

first time since November 2016.

     --Owner-occupier mortgage growth accelerated slightly in February, rising

0.7% after five months of +0.6% m/m growth. In y/y terms, such loans rose above

8.0% (+8.1% in February) for the first time since November 2016.

     --Business credit growth rose 0.1% m/m in February, rebounding from a

similar fall the month before. However, y/y growth has been below 4.0% for the

third straight month. 

     --Other personal credit fell 0.2% m/m, after two months of flat or slight

growth. This was the twenty-sixth straight month of fall in y/y terms.

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

[TOPICS: MTABLE,M$A$$$,M$L$$$,MT$$$$]