Australian Private Sector Credit Surpasses Forecasts with 0.8% Gain

Australia's private sector credit growth accelerated to 0.8% in June, exceeding forecasts of 0.6%. The Reserve Bank of Australia (RBA) reported that this growth is broad-based across housing, personal, and business credit.

The strongest increase was seen in business lending, with a 1.2% month-on-month gain. Housing credit rose 0.6%, while personal credit expanded by 0.7%. This uptick suggests that households and businesses are increasingly willing to borrow, despite elevated interest rates and cost-of-living pressures.

Economists note that one month's data is not enough to shift the policy trajectory, but the trend over the coming months will be closely watched. The RBA's next policy meeting is scheduled for August 5-6, where the board will update its economic forecasts.