Private sector credit increases in August
More people in the private sector may have been inclined to compare credit cards in August, new figures suggest.
Data published by Westpac indicated that there was a 0.2 per cent month-on-month increase in lending, while over the course of the year credit levels increased by 0.3 per cent.
Andrew Hanlan, senior economist at the bank, asserted that the Reserve Bank of Australia (RBA) is expected to lower interest rates over the next year, forecasting that the first reduction will be in December.
"Overall credit growth is expected to remain relatively subdued near-term. Prospects for housing are lacklustre: affordability is a constraint," he stated.
According to Mr Hanlan, households are keener to pay down their debt amid the economic uncertainty.
This comes after minutes from the last meeting of the board of the RBA suggested that Aussies are likely to remain cautious regarding their spending and saving habits.
They observed that a growing number of people have been trying to reduce their debt and increase their saving.
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