There is some tentative evidence that growth in credit extended to Australia's housing investors is slowing, at least on a sequential basis. On a year-on-year basis, the rate is likely to rise for another month or two, says Societe Generale.
At this stage, it is not clear whether the slowdown is because of the RBA and banking regulator's efforts to reign in activity or whether it is merely the consequence of rising house prices and slowing growth in rents, which is weighing on rental yields.
Meanwhile, credit growth among owner-occupiers is stabilizing at about 6%, where it should remain for the foreseeable future. The more interesting category of private sector credit is business loans, which has strengthened notably in recent months, suggesting that investment outside of the resources sector is picking up.
However, the RBA has recently become more downbeat about the prospects for a revival in this segment, so special attention will be paid to the figure for the component.
