Businesses continue to drive credit growth

Research by ANZ and the Reserve Bank found that total credit growth was up 0.7 per cent for the month and up 6.7 per cent year-on-year.

Business credit growth once again saw the biggest monthly increase (1.0 per cent), and rose 6.6 per cent year-on-year.

Total housing credit growth was up 0.6 per cent in October, and increased by 7.5 per cent year-on-year. Owner-occupier credit growth rose 0.7 per cent during the month, and by 6.1 per cent year-on-year, while investor credit growth was up 0.4 per cent for the month, and by 9.7 per cent year-on-year.

Personal credit growth was the only sector to experience a drop – down 0.3 per cent for the month – while its year-on-year growth remained steady.

ANZ said solid business conditions and confidence should see credit growth continue for that sector, but the longer-term outlook will be constrained by businesses’ soft investment intentions.

“Meanwhile, total housing lending remained solid in October, although easing sentiment in the housing market and out-of-cycle mortgage rate increases at the end of October should see credit growth slow from here,” the bank said.

[Related: Business credit growth hits seven-year high]