Credit

Figures released by the RBA yesterday show that credit to the private sector rose by 0.1% over August and 2.5% over the year. Housing is up 7.4% and personal credit up 5.6%. Business credit however dropped 0.6% over August and 2.2% over the year indicating the area most at risk during this delicate phase of recovery.

Earlier in the week retail sales showed a bounce back from last month with a jump of 0.9%. Still not enough to justify an October tightening though in my opinion. Building approvals fell by 0.1% in August.