Mortgage growth firms in face of RBA rate hike

The Reserve Bank of Australia (RBA) has released its financial aggregates for October, which continued to rebound ahead of the 0.25% Melbourne Cup Day rate hike.

Quarterly housing credit growth firmed to 1.0% in October:

This firming in credit growth has been driven by owner-occupiers, where mortgage growth was 1.2% versus just 0.8% growth for investors:

Personal credit growth has also rebounded to its highest level since November 2010:

November’s rate hike by the RBA, alongside this week’s soft retail sales and monthly CPI print, will calm the RBA’s nerves, however.