International
Australia's Private Sector Credit to Grow Over 7% Year Over Year, ANZ Says
Australia's private sector credit is projected to grow by 7.2% year over year this year, tracking at its fastest pace since 2022, before slowing to 5.7% year-over-year by late 2027, ANZ said in a report on Wednesday.Since the last credit forecasts in February, the Middle East conflict has escalated, and two additional 25 basis points rate hikes have been added in the RBA profile, leading to a projected cash rate peak of 4.35%.Early signs indicate a slowdown in housing credit growth, with housing prices in Sydney and Melbourne falling below their October 2025 levels.Capital city prices are expected to rise 2.8% this year and 2.1% in 2027, which should see the pace of housing credit ease and grow 6.9% year over year this year and 5.4% next year, ANZ said.Non-financial business credit has shown resilience and it is expected to grow solidly for a few months before higher rates and economic uncertainty start to impact numbers.Meanwhile, personal credit growth, which has trended higher over the past year, is anticipated to ease to 2.1% year over year by year-end and 1.5% by the end of 2027.
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