Tuesday, November 30, 2010

Credit aggregates unchanged

The RBA released the October credit aggregates this morning and what the RBA itself defines as 'modest' credit growth continues.

Owner-occupier mortgage debt was up 7.1% annualised and investor mortgages 6.9%. Other personal loans clocked up 5%.

Business credit is still in serious decline, down at a 9.3% annualised rate.

No sign here of any dislocation in housing-related debt, however the Minsky-like moment arrived in early November.

As this blogger has argued before, these levels are consistent with flat and falling house prices.

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