Australia Credit Growth Eases as Inflation Gauge Slips to 2.4%

Australian private-sector credit grew 0.5% in May, slowing from April’s 0.7% rise and undershooting the 0.6% consensus, according to data published Monday. On an annual basis, credit expanded 6.9%, edging above April’s 6.7%. Housing credit maintained a 0.5% monthly pace. Separately, the Melbourne Institute’s inflation gauge showed consumer prices increasing 0.1% in June after a 0.4% decline in May. The year-on-year rate eased to 2.4% from 2.6%, near the Reserve Bank of Australia’s 2–3% target band. The combination of moderating monthly credit growth and contained inflation keeps attention on the Reserve Bank’s 22 July policy meeting, where investors are assessing whether the central bank will extend its pause on interest-rate moves.