Australia Private Credit Growth at 5-Month Low

Australia’s private sector credit rose by 0.6% month-over-month in July 2026, marking the softest growth since February and slowing from a six-month high of 0.8% in the previous month. Housing credit, representing 62% of total private credit, increased by 0.5%, the softest rise in a year and easing from a 0.6% rise in June amid slower growth in investor credit (0.5% vs 0.8%), while owner-occupier credit held steady at 0.5%. Additionally, business credit, which accounts for 34% of total private credit, grew by 0.9%, down from 1.1% in June, while other personal credit, making up the remaining 4%, increased by 0.3%, slowing from 0.9%. On an annual basis, private sector credit grew by 8.4%, easing from an 8.6% gain in the preceding period, which was the strongest yearly expansion since October 2022. Annual growth in housing credit edged down to 7.4% from 7.5%, while business credit growth eased to 10.6% from 11% and other personal credit growth remained unchanged at 4.7%.

Australia's private sector credit rose 0.8% month-over-month in June 2026, quickening slightly from 0.7% growth recorded in each of the previous three months and marking the fastest expansion since December. Business credit increased 1.1%, the strongest gain in six months, up from 1.0% in May, supported by continued corporate borrowing and investment activity. Personal credit rose 0.8%, accelerating from 0.6% and posting its strongest monthly increase since December 2009, suggesting firmer household demand for consumer and other personal loans. Meanwhile, housing credit held steady at 0.6% for a sixth consecutive month, indicating resilient mortgage lending despite still-elevated borrowing costs. On an annual basis, private sector credit grew 8.5%, up from 8.3% in May and marking the strongest yearly expansion since October 2022, reflecting sustained demand for credit across households and businesses.

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.