Australia: Housing credit growth at a new low – ANZ

ANZ analysts note that Australia’s private sector credit growth remained subdued in May, growing just 0.2%.

Key Quotes

“Housing credit growth slowed further, with investor finance flat for the fifth straight month, while owner-occupier finance also saw growth slow. With all the regulatory changes over the last few years, the impact in particular on investor finance has become very clear.”

“Although a disappointing monthly result for housing credit, we still see housing credit improving later this year as the impacts of further anticipated rate cuts and changes to the mortgage affordability floor start to have an effect.”

“With business credit growth expected to remain weak for the coming months based on forward-looking loan approvals, the recovery in housing credit will be essential if private sector credit growth is to pick up at all later this year.”