Credit growth bounces
Housing credit growth picked up to 4.4 per cent over the year to April, according to the RBA's latest financial aggregates figures, released today.
The acceleration suggests that we'll likely see double-digit housing price growth by the end of the financial year at 30 June, mirroring what has happened in some other countries.
To date the cycle has been driven by first-time buyers and upgraders, so there's little to note from a financial stability perspective.
Investor credit growth has been just 1 per cent over the year to April, close to the lowest level on record, as more and more loans have continued to be flicked off interest-only terms.
Overall, total credit growth in the economy was just 1.3 per cent over the year to April, which is also only just off the cycle lows.
Personal credit growth remained deeply in negative territory for the year, as consumers have benefited from the stimulus packages and cleared credit card and other personal debts.
