Data Snapshot: Private Sector Credit - Signs of Stabilisation

The key points in this report are:

  • Credit growth in the private sector expanded 0.3% in January, increasing from 0.2% in the month before.
  • Housing credit expanded at a moderate pace in January. Outstanding loans for housing grew 0.3% for the fourth consecutive month.
  • Housing credit growth continued to be driven by credit extended to owner-occupiers, although there was a small contribution from investors in January. Owner-occupier credit expanded 0.4% over the month. For housing investors, credit expanded 0.1%, its first positive reading since December 2018.
  • Business credit picked up in January, rising 0.5% compared with a 0.2% increase in the month before. It was the highest pace of business credit growth since March 2019. Easing concerns over economic growth in late 2019 and in January 2020 appear to have encouraged borrowing.
  • Record-low interest rates and increasing house prices will support credit growth over the year ahead. However, the emerging impact of the coronavirus may dent the recovery in business borrowing while heavily indebted households may be reluctant to increase their leverage.

 

Please see the attached report for more information.



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Data Snapshot: Housing Financ&hellip