The pace of lending to the non-bank private sector by financial institutions in Australia fell again for a fourth consecutive month in December. The slowing in loan growth was noted by various economists and commentators but at the same time the various figures attracted little in the way of controversy. In any case, attention was focussed on December CPI figures which came out later in the day.
According to the latest RBA figures, private sector credit grew by 0.3% in December, down from the 0.4% growth rate recorded in November and less than the 0.5% expected. The year-to-December growth rate of 4.8% slipped from November’s comparable figure of 5.2% (after revisions) as personal loans contracted while business and investor loan growth rates slowed.
