RBA - Guy Debell

Assistant Governor Guy Debelle spoke yesterday about a number of issues. Key for me was his assertion that lending to businesses was likely to pick up. One of the big impediments to growth has been a reluctance buy banks, while access to funds has been difficult, to lend to businesses. During the early days of the GFC lines of credit were cut left right and centre - particularly buy foreign banks who faced particularly severe demands in their home countries. Now that it's clear that many of the dangers have passed it's hoped that tight credit conditions may be relaxed providing favourable conditions for continued growth.

"As confidence returns, one would expect to see business credit growth pick up again."