Today’s credit data continues to show that the low interest rate environment is helping to lift housing-related borrowing.But annual growth in the other areas of lending, to businesses and for personal purposes, remain soft.Overall credit growth was 0.4% in January, taking the annual change to 4.1%, which is still relatively modest compared tohistory. Business credit rose by 0.2% in January to be 2.0% higher than a year ago. Businesses have alternative sources offunding, here and offshore, that they appear to be using. Corporate Australia has about $300bn in cash available, as well asother assets, which is well above pre-GFC levels.
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Commonwealth Bank