Australian Private sector credit (July 2025) +0.7% m/m
- expected +0.6%, prior +0.6%
- higher than expected for a nice beat
- all three main measures higher (see pic of table below)
+7.2% y/y
- prior +6.8%
–
Private sector credit data from the Reserve Bank of Australia (RBA) is closely watched because it provides an early read on borrowing trends across households and businesses, which in turn reflect the underlying strength of demand in the economy. Rising housing credit growth can signal momentum in the property market, while business lending gives a gauge of investment appetite and confidence. The data also feeds into the RBA’s assessment of financial conditions and helps shape monetary policy decisions, since rapid credit growth can point to overheating risks, while weak lending may highlight softer economic activity.
Traders watch RBA private sector credit as a gauge of housing demand, business confidence and monetary policy traction—stronger lending signals growth momentum, weaker credit points to economic drag.
This article was written by Eamonn Sheridan at investinglive.com.