2026.02.2700:30:00UTC+00Australian Private Sector Credit Growth Cools to 0.5% in January

Australian private sector credit growth eased at the start of 2026, with month-on-month expansion slowing to 0.5% in January from 0.8% in December 2025. The latest data, updated on 27 February 2026, indicate a moderation in borrowing momentum across the private sector after a stronger close to last year.

On a month-over-month basis, the January figure reflects a softer pace of credit expansion compared with December, when credit grew 0.8% versus November. The comparison underscores a cooling in credit demand or lending activity as the new year began, potentially signaling increased caution among businesses and households or a response to evolving financial conditions.

The slowdown in private sector credit growth will be closely watched by market participants and policymakers as an indicator of underlying economic momentum, given its role as a key gauge of borrowing, investment, and consumption trends in Australia.