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Lending commitments down in December

Lending commitments down in December
Lending commitments fell to an eight-month low in October, as consumers and business felt the pressure of rising interest rates.
According to the latest ABS figures, total lending finance commitments – including leases – fell by 9.7 percent to $50.766 billion in October, the lowest amount since the $49.272 billion posted in February this year.
However CommSec eonomist Savanth Sebastian said the fall won’t stop the Reserve Bank of Australia (RBA) from raising interest rates further next year.
“It was a surprising decline, I think, overall. Will it make any difference to the RBA’s rate hike in February, no,” he said.
The ABS data also showed that housing finance for owner occupation fell 1.7 percent to $17.176 billion in October; while personal finance commitments fell 1.5 percent in October to $6.953 billion.

Lending commitments fell to an eight-month low in October, as consumers and business felt the pressure of rising interest rates.

According to the latest ABS figures, total lending finance commitments – including leases – fell by 9.7 percent to $50.766 billion in October, the lowest amount since the $49.272 billion posted in February this year.

CommSec eonomist Savanth Sebastian said the fall won’t stop the Reserve Bank of Australia (RBA) from raising interest rates further next year.

“It was a surprising decline, I think, overall. Will it make any difference to the RBA’s rate hike in February, no,” he said.

The ABS data also showed that housing finance for owner occupation fell 1.7 percent to $17.176 billion in October; while personal finance commitments fell 1.5 percent in October to $6.953 billion.

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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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