Australia’s private sector credit rose by 0.7% month-over-month in May 2026, matching the growth recorded in both March and April and slightly exceeding market expectations of a 0.6% rise. Housing credit, which accounts for 62% of total private credit, increased by 0.5%, easing from a 0.6% gain in the previous month amid slower growth in both owner-occupier credit (0.4% vs 0.5% in April) and investor credit (0.8% vs 0.9%). Meanwhile, business credit, representing 34% of the total, increased by 1.0%, following a 0.7% rise, while other personal credit, accounting for the remaining 4%, advanced by 0.6% after a 0.2% increase in April. On a yearly basis, private sector credit growth increased to 8.2% from 8.0% in the previous month. Annual growth in housing credit remained steady at 7.5%, while that of business credit (9.9% vs 9.6%) and other personal credit (4.4% vs 4.3%) picked up. The continued expansion in credit came amid tighter monetary policy from the RBA.