“Cheap credit”, first-home buyers supporting December credit growth

29 January 2021

 

Summary: Private sector credit increases modestly in December; just above expectations; housing responding to “cheap credit”, first-home buyers; continued steady growth in owner-occupier segment, assisted by rise in business loans; downturn “unlikely” to be as deep as past recessions.   The pace of lending to the non-bank private sector by financial institutions in Australia has been trending down since late-2015. Private sector credit growth appeared to have stabilised in the...

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