Credit growth in the Aussie economy picked up strongly to 6.6 per cent for the year to November, as business credit growth surged to 7.3 per cent year-on-year following a strong economic rebound on the reopening.
Total credit growth in the month of November was 0.94 per cent, which is as strong as we have seen since all the way back in 2007.
Annual housing credit growth increased from 6.7 per cent to 7.1 per cent in the month, but the pace of acceleration is now less steep.
Investor credit growth increased a little, but only to 3 per cent, so expect to see some chronically tight rental markets in 2022.
The impulse of housing credit growth continues to suggest that housing price growth will cool imminently; in fact we should already be seeing this in the December numbers.
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It's particularly pleasant to see business credit growth picking up, to the highest level in half a decade.
