Australia Private Credit Growth at 10-Month Low

Australia’s private sector credit rose by 0.6% month-on-month in February 2026, slightly picking up from a ten-month low of 0.5% gain in the previous month and in line with market expectations. The uptick highlights improved lending activity across key segments of the economy, particularly in personal credit (0.4% vs 0.2% in January) and business credit (0.8% vs 0.5%). In contrast, housing credit remained steady at 0.6%. The modest acceleration came despite still-elevated borrowing costs, with the Reserve Bank of Australia raising its cash rate by 25 basis points to 4.1% at its March 2026 meeting, following a hike in February. On a yearly basis, private sector credit marginally increased to 7.8% from 7.7% in January 2026.

Australia’s private sector credit rose 0.5% month-on-month in January 2026, missing market expectations of 0.7% and slowing from 0.8% gain in the previous month. It marked the softest increase since last March, as credit growth eased across most components, including housing (0.6% vs 0.7% in December), business (0.5% vs 1.0%), and personal credit (0.2% vs 0.5%). The moderation likely reflected still-elevated borrowing costs and cautious lending conditions, which continued to weigh on loan demand from households and firms. On an annual basis, private credit expanded 7.7%, holding steady for a second straight month and remaining at the fastest pace in five years.

Australia’s private sector credit rose 0.8% month-on-month in December 2025, exceeding market expectations of 0.6% and accelerating from a 0.6% growth in the previous month. The latest figure marked the highest increase since June 2022, as credit growth quickened for both housing (0.7% vs 0.6% in November) and business (1.0% vs 0.9%). At the same time, personal credit rebounded strongly (0.5% vs -0.6%). On an annual basis, private credit expanded 7.7%, up from 7.4% in the preceding two months and marking the fastest pace in five years, underscoring sustained demand for credit despite a still-restrictive interest-rate environment.