Australia Private Credit Growth Below Forecasts

Australia’s private sector credit edged lower to 0.5% month-over-month in May 2025, compared to market expectations and prior month’s 0.7%. The slowdown was mainly driven by a deceleration in business loans, which ticked down 0.8% compared to 1% in April. Meanwhile, personal loans edged up to 0.5% in May from 0.3% in the previous month, while housing credit growth remained steady at 0.5%. On an annual basis, private sector credit grew by 6.9% in May — the fastest pace since February 2023 — from a 6.7% gain in the previous month.