Australian Private Sector Credit Growth Likely Reflects Data Center Investments

Dow Jones
07/31

0419 GMT - Australia's private sector credit growth rose by more than expected in June, but the result is unlikely to change the Reserve Bank of Australia's view that monetary conditions are somewhat tight. It can take several months after interest rates are raised before changes in activity appear in credit numbers, says Ashwin Clarke, an economist at CBA. The data may also be picking up investment in data centers to an extent, which is an economic tailwind that the RBA is already aware of, he adds. While the resilience of housing lending remains stronger than expected, Clarke notes that some banks have already reported falls in housing loan applications.

 

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