Australia: Private credit expanding at a modest pace - Westpac
Australian credit to the private sector is expanding at a modest pace as credit grew by 0.5% in March, following a 0.4% gain in February and below par outcomes of 0.3% in both December and January, points out Andrew Hanlan, Research Analyst at Westpac.
Key Quotes
“Annual credit growth is 5.1% currently, following a 4.9% increase in 2017, representing a slowdown from a 5.6% for 2016 and a 6.6% in 2015.”
“The key themes are: a trend slowing in housing credit, led by investors, in response to tighter lending conditions; and business credit volatile around a modest uptrend.”
“In March the detail has moved back into line with the underlying themes. Business credit has bounced back, expanding by 0.8% to be 4.2% above the level of a year ago and housing was on the soft side, a resumption of the trend slowdown.”
“Housing credit grew by 0.45% in March, fully unwinding the surprise lift from a 0.47% in January to a 0.54% in February. Annual housing credit growth is 6.1% currently.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
