Lending on the rise: RBA
August 31, 2009
Total credit provided to the private sector by financial intermediaries rose by a stable 0.2 per cent over July 2009, following an increase of 0.1 per cent over June, according to official RBA data.
Over the year to July, total credit rose by 3.0 per cent.
Housing credit remained a shining beacon, increasing by 0.6 per cent for the second consecutive month. Over the year to July, housing credit rose by 7.3 per cent. The rise in housing credit over July was mostly due to growth in lending to owner-occupiers, with only weak growth in lending to investors, the central bank advised. It is hoped that investors will be able to keep the housing market strong later in the year as the reduction to the FHOG boost is likely to see a decline in first home buyers - which have so far ensured Australia’s housing market has remained resilient in the face of an unprecedented financial crisis.
Other personal credit declined by 0.2 per cent over July, following a fall of 0.3 per cent over June. Over the year to July, other personal credit fell by 6.4 per cent, reflecting a large decline in margin lending.
The decline in business credit has slowed to 0.3 per cent over July, following a fall of 0.6 per cent over June. Over the year to July, business credit declined by 0.7 per cent.