Lending for property slows in May: RBA

Lending to businesses and property buyers grew only slightly in May while personal loans continued to fall, statistics from the central bank suggest.

The numbers showed overall private sector credit grew 0.2 per cent – meeting market expectations and equalling April’s result – and that credit for mortgages increased 0.2 per cent compared to the previous month, when they rose 0.3 per cent, while credit to business was up 0.1 per cent and personal credit fell 0.6 per cent.

The financial aggregates data released by the Reserve Bank of Australia on Friday indicated overall credit rose 3.6 per cent over the past year as housing credit grew 3.7 per cent – the slowest growth rate since records started in 1976 – and business credit gained 4.5 per cent while personal credit fell 3.2 per cent in the 12 months to May.

AAP

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