Australia’s private sector credit rose by 0.6% month-on-month in February 2026, slightly picking up from a ten-month low of 0.5% gain in the previous month and in line with market expectations. The uptick highlights improved lending activity across key segments of the economy, particularly in personal credit (0.4% vs 0.2% in January) and business credit (0.8% vs 0.5%). In contrast, housing credit remained steady at 0.6%. The modest acceleration came despite still-elevated borrowing costs, with the Reserve Bank of Australia raising its cash rate by 25 basis points to 4.1% at its March 2026 meeting, following a hike in February. On a yearly basis, private sector credit marginally increased to 7.8% from 7.7% in January 2026.