Australia: Home loans fell by -1.1% in July - TDS

Analysts at TD Securities note that Australia’s June home loans fell by -1.1%/m (market flat) led lower by an investor lending slump of -2.7%/m.

Key Quotes

“As the 10% investor loan growth cap was removed from July, we think the Jul/Aug reports will be more important than this one. With investor finance down -18%/y, however, SYD/MEL prices can only going lower.”

“In the RBA's annual Anika speech, the RBA offered another hawkish tweak to the forecasts, this time core inflation back to 2.5% in Dec 2020 (prior ended with June 2020 at 2.25%). The speech also noted the improving debt position of households, tightening labour market and inflation target to be reached in two years, concluding next move still remains up, but not in the "near-term".”