Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Australia’s Private Credit Rises 0.6% as Housing Lending and Inflation Shape RBA Outlook
Highlights:
Australia’s Private Sector Credit Maintains Steady Growth
Australia's private sector credit increased 0.6% in September 2026, marking its third consecutive monthly expansion at the same pace, according to Reserve Bank of Australia (RBA) data released on 30 October 2026. Annual credit growth reached 8.4%, compared to 7.2% in September 2025, indicating continued borrowing activity despite elevated financing costs.
Housing Credit Growth Shows Signs of Moderation
Housing credit increased 0.4% in September, matching August's growth rate. However, annual housing credit growth moderated to 7.0%, suggesting borrowing momentum is gradually easing.
The latest lending figures highlighted differing trends across credit categories:
The moderation in housing credit suggests higher borrowing costs and changing property market conditions may be influencing lending activity.
Producer Inflation Adds Pressure to Economic Outlook
Separately, Australian Bureau of Statistics data showed producer prices increased 1.1% during the September quarter, following a 1.3% rise in June. Annual producer inflation remained at 3.6%, highlighting persistent cost pressures across parts of the economy. Construction-related expenses and labour costs continued influencing business pricing, although weaker manufacturing prices provided some relief.
RBA Interest Rate Outlook Remains in Focus
The combination of resilient business lending, moderating housing credit and persistent producer inflation presents mixed signals for monetary policymakers. Stronger borrowing activity suggests economic resilience, while elevated input costs could complicate efforts to contain inflation.
Outlook: Housing Trends Could Influence Policy Expectations
Investors will closely monitor housing finance, inflation indicators and the RBA's November interest rate decision. Further moderation in housing credit could indicate weakening demand, although sustained business borrowing may support economic activity. The direction of inflation and household lending will remain central to assessing Australia's monetary policy outlook.
Note- All data presented is based on information available at the time of writing.
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