The RBA has just released its financial aggregates data for June and – you’ve guessed it – there’s was another significant increase in credit growth to housing investors.
From a month earlier, borrowing increased by $5.814 billion, the largest rise since June 2013, taking annual growth in credit to $52.504 billion, the largest expansion on record.
Unsurprisingly given the rapid growth seen in June, the level of outstanding credit extended to investors rose to $536.193 billion, also a record-high.
Over the past decade this figure jumped by 135%, or $307.765 billion. From 20 years ago, this extends to an amazing to 1,593%, or $504.52 billion.
Perhaps most importantly, particularly from a regulatory perspective, credit growth to housing investors increased by 10.7% from 12-months earlier, well above the 10% ceiling Australia’s banking regulator – APRA – warned could see additional measures put in place to cool lending to this segment.
Clearly those warnings were not heeded, and APRA, as we’ve seen, decided to act.
Business Insider Emails & Alerts
Site highlights each day to your inbox.