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MNI BRIEF: Aussie New Home Loans Dip For Fourth Straight Month

MNI (PERTH)
(MNI) Perth

The Reserve Bank of Australia's aggressive tightening cycle continues to reverberate through home lending, with new home loans dropping for a fourth consecutive month in September, according to Australian Bureau of Statistics lending indicators released on Wednesday.

Total home loans fell 8.2% m/m to AUD25.1 billion, the lowest level since November 2020 and well down from peak monthly loans of AUD32.77 billion in December 2021. The value of new owner-occupier loans fell 9.3%, while new investor loans dropped 6%.

The RBA raised interest rates 25bp to 2.85% on Nov 1 as it raised its forecast for peak inflation to "around" 8% by the end of the year. (See MNI RBA WATCH: Hikes 25bp, To Miss Inflation Target Until 2025). The Bank is expected to hike again by 25bp at its December meeting. (MNI RBA REVIEW - November 2022; Balancing Inflation & Growth)

Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
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Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
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