Commercial and personal financing rose in the month November, offsetting weakness in housing loans.

Commercial financing increased four per cent to $26.677 billion, while personal finance was up 1.1 per cent to $7.053 billion. The two rises contrasted with a three per cent drop in lease finance and a 2.9 per cent decline in housing finance to $16.537 billion. The fall in housing finance was driven by a 5.6 per cent drop in loans on the back of interest rate hikes and a reduction in stimulus measures.

The rise in lending has enhanced the case for a 0.25 per cent hike to the cash rate next month. The Reserve Bank Board will meet on February 2, with inflation data later this month a key to their decision – although most analysts are currently expecting a fourth consecutive rise.