Annual credit growth is running at the highest level since March 2009. Annual growth has stepped up from 3.0% to 4.7%over the past year. The lift in credit growth is a natural response to lower levels of interest rates and some recovery is riskappetite. While overall credit growth levels remain well below long-run average levels, the RBA would prefer not to seeanother debt-fuelled cyclical upswing. If credit growth continues expanding at the current trend pace of 0.4%, annualgrowth rates will top out at around 5%pa.
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