Lending to businesses shrank in June: RBA

The pace of lending to businesses went backwards in June while loans to property buyers edged up only slightly, statistics from the central bank suggest.

The numbers showed overall private sector credit grew 0.1 per cent – below market expectations of 0.3 per cent – and credit for mortgages increased 0.2 per cent compared with the previous month, while credit to business was down 0.1 per cent and personal credit fell 0.2 per cent.

The financial aggregates data released by the Reserve Bank of Australia on Wednesday revised down May’s total credit expansion from 0.2 per cent to 0.1 per cent and indicated overall credit rose 3.3 per cent over the past year.

Annual housing credit grew 3.5 per cent – the slowest growth rate since records started in 1976 – and business credit gained 4.0 per cent while personal credit fell 3.5 per cent in the 12 months to June.

AAP

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