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.