The RBA has just released the Private Sector Credit data for march, which showed once again that monetary policy in Australia is gaining traction.
Housing credit, the singly most-responsive economic indicator to RBA interest rate policy, rose 0.5% in February after a 0.6% rise in January.
Even though this is a slight deceleration in the month-on-month rate of growth, the yearly growth rate is now at 5.8% — the highest rate of growth since September 2011 before the RBA started cutting rates from 4.75% to the current 2.5%.
Investor housing accelerated to 7.6% year-on-year while owner-occupied rose to 4.9%.
Other data out showed private, non-housing, credit fell 0.2% in the month, while business investment rose 2.4% to leave these aggregates up 0.7% and 2.4% respectively year-on-year.