New financial aggregates data from the Reserve Bank of Australia show that credit demand remains soft.

Total credit provided to the private sector by financial intermediaries rose by only 0.1 per cent over September 2010, following an increase of 0.1 per cent over August. Over the year to September, total credit rose by 3.3 per cent.

Housing credit increased by 0.6 per cent over September, following an increase of 0.6 per cent over August. Over the year to September, housing credit rose by 8.0 per cent. Housing credit rose over September due to growth in lending to both owner-occupiers and investors.

Other personal credit increased by 0.3 per cent over September, after falling by 0.2 per cent in August. Over the year to September, other personal credit increased by 2.8 per cent.

Business credit fell by 0.9 per cent over September, following a fall of 0.7 per cent over August. Over the year to September, business credit declined by 3.7 per cent.

Over the month of September, M3 rose by 0.4 per cent and broad money increased by 0.3 per cent. Over the year to September, broad money grew by 5.4 per cent.