FX.co ★ Australia Private Credit Growth at 5-1/2-Year High

In December 2025, Australia's private sector credit experienced a notable increase, expanding by 0.8% month-on-month. This growth surpassed market expectations, which had predicted a rise of 0.6%, and showed acceleration from the 0.6% growth recorded in November. The latest figures represent the most significant rise since June 2022, with credit growth across both housing and business sectors improving to 0.7% and 1.0%, respectively, compared to November's 0.6% for housing and 0.9% for business. Notably, personal credit also saw a strong rebound, increasing by 0.5% following a decline of 0.6% in the prior month. On a yearly basis, private sector credit expanded by 7.7%, up from 7.4% over the past two months, marking the most rapid growth rate in five years. This data highlights the ongoing demand for credit, even within a challenging interest-rate environment.