Australia’s private-sector credit increased by 0.6 per cent month-on-month in August 2025, in line with market expectations and underscoring persistent borrowing activity across the economy. Data released by the Reserve Bank of Australia show the annual growth rate remained at 7.2 per cent, the strongest rate since early 2023.

The breakdown reveals housing credit rose 0.6 per cent in August, up from a long-running monthly pace of 0.5 per cent, while other personal credit increased by 0.5 per cent and business credit eased to 0.6 per cent from 1.3 per cent in July. These figures reflect broad-based credit demand despite tighter monetary settings.

For Australia’s major banks, the sustained credit growth offers support to lending volumes and net interest income even as competitive pressures challenge margins. The data also carry policy implications for the central bank: resilient credit expansion and housing momentum may reduce the scope for further monetary easing in the near term.

Looking ahead, analysts note risks on the horizon ranging from affordability constraints to global economic headwinds. But for now the strength in credit underscores that borrowing appetite remains elevated and the domestic lending-cycle retains momentum.