Only hope remains from the phantom housing recovery after the RBA released credit growth aggregates for October. Growth for housing credit has fallen to a positive 0.3 per cent, down from 0.4 per cent the month earlier. Over the 12 month period, housing credit is growing at just 4.7 per cent the worst figure on record.
Credit growth for owner-occupiers’ is also firmly stuck on 0.3 per cent. Over the 12 month period, housing credit growth for owner-occupiers’ has fallen to 4.3 per cent, the worst on record, from 4.5 per cent the month earlier.
This data would suggest the RBA can further cut interest rates this week without fuelling a new credit bubble in the residential housing sector.
» Financial Aggregates, October 2012 – The Reserve Bank of Australia, 30th December 2012.