Australia’s private sector credit increased by 0.7% month-on-month in March 2026, coming in slightly above market expectations and February’s 0.6% rise. This pointed to a gradual improvement in lending activity, with personal credit rising further (0.6% vs 0.4% in February), while growth in housing and business credit remained steady at 0.6% and 0.8%, respectively. On a yearly basis, private sector credit rose by 8.1% in March, the largest increase since November 2022, following a 7.8% growth in the previous month. The increase came despite still-elevated borrowing costs, as the Reserve Bank of Australia lifted its cash rate by 25 basis points to 4.1% in March, following a similar hike in February.