Australia’s Private Sector Credit Growth Holds Steady in April

Australia’s private sector credit rose by 0.7% month-over-month in May 2026, matching the growth recorded in both March and April and slightly exceeding market expectations of a 0.6% rise. Housing credit, which accounts for 62% of total private credit, increased by 0.5%, easing from a 0.6% gain in the previous month amid slower growth in both owner-occupier credit (0.4% vs 0.5% in April) and investor credit (0.8% vs 0.9%). Meanwhile, business credit, representing 34% of the total, increased by 1.0%, following a 0.7% rise in April, while other personal credit, accounting for the remaining 4%, advanced by 0.6% after a 0.2% increase. Yearly, private sector credit grew by 8.2%, the largest increase since November 2022, following an 8.0% rise in April. Annual growth in housing credit remained steady at 7.5%, while that of business credit (9.9% vs 9.6%) and other personal credit (4.4% vs 4.3%) picked up. The continued expansion in credit came despite tighter monetary policy from the RBA.

Australia’s private sector credit growth remained flat at 0.7% month-over-month in April 2026, according to a delayed report from the Reserve Bank of Australia. The figure slightly beat market forecasts of 0.6%. Annually, growth dipped marginally to 8.0% from 8.1%, yet continued to signal resilience in private credit despite higher interest rates and economic uncertainty. Housing credit, representing 62% of total credit, grew by 0.6%. Investor credit led the way, rising 0.9% and pushing annual growth to 10.2%, the first double-digit increase since 2015. Owner-occupier credit growth stayed steady at 0.5% month-over-month and 6.2% year-over-year. Business credit, accounting for 34% of private credit, increased by 0.7%, while other personal credit, making up 4%, rose by just 0.1%, marking the second-weakest performance since late 2024. Looking forward, credit growth is expected to slow due to higher energy prices, rising inflation, and tighter monetary policy from the RBA.

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.