Australia Private Sector Credit for November 2025: +0.6% m/m
- expected +0.6%, prior +0.7%
Summary
- Credit growth matched expectations in November
- Lending remains steady, as do rates for now
-
Limited implications for RBA policy
Australia’s private sector credit growth held steady in November, offering little in the way of fresh signals for monetary policy but reinforcing the view of a cautiously expanding credit environment.
Data published by the Reserve Bank of Australia showed private sector credit rose 0.6% month-on-month in November, in line with market expectations and only marginally softer than the 0.7% increase recorded in October. The result points to stable borrowing conditions across the economy, with neither a sharp acceleration nor a meaningful slowdown in credit demand.
Private sector credit is a broad measure capturing lending to households and businesses, and is closely watched as an indicator of financial conditions, economic momentum and the transmission of monetary policy. Sustained strength in credit growth can signal rising demand and inflationary pressure, while weakness may point to tighter financial conditions and slowing activity.
The November reading suggests that stable interest rates continue to restrain borrowing at the margin, but have not triggered a sharp contraction in credit. Household balance sheets remain relatively resilient, while business borrowing appears steady, supported by ongoing investment needs and population-driven demand.
For the RBA, the data is unlikely to materially shift the policy outlook on its own. Credit growth at this pace is broadly consistent with an economy growing modestly below trend.
From a market perspective, private sector credit is best viewed as a secondary indicator, offering confirmation rather than a catalyst. FX and rates markets tend to respond more directly to inflation, wages and labour market data, with credit figures used to validate broader narratives around growth and financial conditions.
Still, the steadiness of credit growth matters at the margin. A sustained deceleration would strengthen the case for eventual easing, while any renewed acceleration could reignite concerns about household leverage and inflation persistence.
This screenshot shows the dates of Reserve Bank of Australia policy meetings coming in 2026.
This article was written by Eamonn Sheridan at investinglive.com.
