Housing credit bounce in September

Business investment slumps

Broad money growth hit a decade high of 12 per cent in September, according to the RBA's Financial Aggregates.

However, with businesses unwilling or unable to invest credit growth declined to 2 per cent, the lowest level since May 2008.

This isn't too much of a surprise, since it's been tough to make investment commitments due to the restrictions in place in some states. 

Housing credit is at least biting, with monthly credit growth hitting a 25-month high in September.

With personal credit growth at record lows and unemployment effectively running at around double digit levels, it's time for further action. 

The Reserve Bank is widely expected to announce a suite of measures to lower borrowing costs next week, possibly including a form of QE. 

The market awaits the details.

With the RBA's mandate requiring full employment the measures may include some reference to satisfactory progress being made towards that goal.

The RBA's mandate also requires targeting inflation of 2 to 3 per cent, on average, but the target has been missed on the low side since 2015.