The Reserve Bank has just released its latest debt data showing that investors are still driving what limited growth there is in its “Private Sector Credit” report.
Total credit rose 0.5% in September, with total housing up 0.6%, while business rose 0.5% after a flat result last month. Personal credit was up only 0.2%.
Looking at the break up within the housing sector’s growth rate, it is investment housing which is the driver. The month-on-month rise of 0.9% took the year-on-year rate of growth to 9.5%, the highest since March 2008.
No doubt growth rates in investor home loans like this will continue to catch APRA’s (Australian Prudential Regulation Authority) eye and feed the debate around macro-prudential risk.