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2026.03.3100:43:09UTC+00Australia Private Credit Growth Slightly Picks Up

Australia’s private sector credit grew by 0.6% month-on-month in February 2026, edging up from a ten-month low of 0.5% in January and matching market expectations. The increase points to firmer lending activity across major areas of the economy, led by stronger gains in personal credit (0.4% vs 0.2% in January) and business credit (0.8% vs 0.5%). By contrast, housing credit growth was unchanged at 0.6%. This mild acceleration occurred despite borrowing costs remaining elevated, with the Reserve Bank of Australia lifting its cash rate by 25 basis points to 4.1% at its March 2026 meeting, following a similar hike in February. On an annual basis, private sector credit growth inched up to 7.8% from 7.7% in January 2026.

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