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Credit growth up stats up and down in January

Credit growth up stats up and down in January

(01 March 2013 – Australia) Credit growth continued in January, but offered no evidence of an acceleration that could sway the Reserve Bank of Australia (RBA) to be more cautious about raising interest rates. The value of credit provided to the private sector rose by 0.2 percent in January, after the 0.4 percent gain in December that made up for November's unchanged result.

The seasonally adjusted figures were reported by the RBA on Thursday.

Annual growth remained at 3.6 percent, little changed from the 3.5 percent rise over the year to January 2012 and the 3.2 percent gain over the year before that.

The slowdown in monthly credit growth in January compared with December was due mainly to the more volatile business category, where credit growth stalled after a 0.7 percent bounce back in December from a similar-sized fall in November.

Business credit growth was up by 2.8 percent through the year to January, but all of that weak rise was seen over the first half of the year - the level of business credit provision in January was actually marginally lower than six months earlier.

Housing credit rose by 0.4 percent, continuing a succession of plodding gains.

Annual growth in housing credit wound down from 4.5 percent to 4.4 percent, the slowest annual rise in the data series that goes back to 1976.
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