Australia Private Credit Rises Slightly More than Expected

Australia’s private sector credit increased by 0.7% month-on-month in March 2026, coming in slightly above market expectations and February’s 0.6% rise. This pointed to a gradual improvement in lending activity, with personal credit rising further (0.6% vs 0.4% in February), while growth in housing and business credit remained steady at 0.6% and 0.8%, respectively. On a yearly basis, private sector credit rose by 8.1% in March, the largest increase since November 2022, following a 7.8% growth in the previous month. The increase came despite still-elevated borrowing costs, as the Reserve Bank of Australia lifted its cash rate by 25 basis points to 4.1% in March, following a similar hike in February.

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.