RBA Tightening Takes Hold: Australian Private Sector Credit Growth Slows

Australia's private sector credit growth slowed to 8.4% year-on-year in July, down from 8.5% in June, according to data released by the Reserve Bank of Australia (RBA).

The marginal decline signals a gradual cooling in borrowing activity as the central bank's elevated interest rate environment continues to weigh on households and businesses.

Housing credit has been sensitive to mortgage rate changes, with many borrowers opting for fixed-rate loans or reducing new borrowing. Business credit, meanwhile, has been supported by investment in equipment and working capital, but growth is also moderating.