Credit growth won’t hurt rates: experts
Private sector credit growth picked up in the final months of 2005 but this is unlikely to cause any concern for the Reserve Bank of Australia (RBA).
Figures from the central bank show total credit provided to the private sector by financial intermediaries rose by 1.2 per cent in December, following a rise of 1.0 per cent in November.
Over the year total credit rose by a whopping 13.5 per cent.
The monthly result was stronger than the one per cent rise the market was expecting but RBC Capital Markets senior economist Michael Every said the figures did not require an interest rate rise.
“Things are unfolding at the moment in a way the RBA would like,” he said.
Housing credit grew by 0.9 per cent in December and rose by 12.3 per cent over the year. Another stellar year for housing worldwide.
Other personal credit rose by 10.7 per cent over the year, while business credit grew by 16.0 per cent over the year.
2006 is predicted to be another great year worldwide, but we may see a small slowdown, but still an incredible year.
Comments
Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!