Australia’s creditless recovery

Via RBA credit aggregates:

The table below presents a summary of the latest financial aggregates statistics.

Financial Aggregates

Percentage change
Monthly Year-ended
September 2020 October 2020 October 2019 October 2020
Total credit 0.0 0.0 2.4 1.8
– Housing 0.4 0.3 2.9 3.3
– Personal −1.0 −0.7 −4.7 −12.7
– Business −0.4 −0.3 2.7 1.4
Broad money 0.9 0.7 4.1 12.1

Sources: ABS; APRA; RBA

All growth rates for the financial aggregates are seasonally adjusted, and adjusted for the effects of breaks in the series as recorded in the notes to the tables listed below. Data for the levels of financial aggregates are not adjusted for series breaks, and growth rates should not be calculated from data on the levels of credit. Historical levels and growth rates for the financial aggregates have been revised owing to the resubmission of data by some financial intermediaries, the re-estimation of seasonal factors and the incorporation of securitisation data. The RBA credit aggregates measure credit provided by financial institutions operating domestically. They do not capture cross-border or non-intermediated lending.

That’s a massive nothing burger on every credit measure.

David Llewellyn-Smith

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