Australian housing credit growth has accelerated to an annualised rate of 6.9 per cent, according to the Reserve Bank of Australia (RBA). The latest figures, released today, mark the highest growth rate recorded since November 2022. This increase provides another key data point for the RBA as it prepares for its upcoming meeting on interest rates next week.
The growth in housing credit follows a period of rate cuts that began in February and an expansion of the federal government’s five per cent deposit scheme from October. These factors appear to have stimulated activity in the housing market, contributing to the increased demand for credit. The RBA will likely weigh these developments against other recent economic data, including elevated inflation figures released earlier this week and a strong jobs report from the previous week.
Housing costs are a significant component of the Consumer Price Index (CPI), carrying a weighting of 21.39 per cent, according to the Australian Bureau of Statistics’ latest annual update. The RBA closely monitors housing-related data as it formulates its monetary policy decisions, which directly impact interest rates and broader economic conditions.
