Financial Aggregates July 2005

Total credit provided to the private sector by financial intermediaries rose by 0.5 per cent in July, following a rise of 1.1 per cent in June.  Over the year to July, total credit rose by 13.4 per cent.

In the month of July, M3 grew by 0.5 per cent, while broad money increased by 0.2 per cent.  Over the year to June, broad money rose by 9.7 per cent.

These estimates include revisions to the historical levels and growth rates of the financial aggregates. These largely reflect the incorporation of more comprehensive data that better reflect developments in the market for securitised housing loans and lending by non-traditional lenders.  Details of this change are provided in an explanatory note that accompanies this release.  In addition, other revisions have occurred due to the resubmission of data by some financial intermediaries, the annual re-estimation of seasonal factors by the ABS, and the incorporation of quarterly data from the ABS on the stock of securitised personal and business loans.  The net effect of these factors on housing credit growth is for the monthly rates to be revised up by between 0.1 and 0.4 percentage points from May 2004.  

All growth rates for the financial aggregates are seasonally adjusted, and adjusted for the effects of breaks in the series as recorded in the footnotes to tables.  Figures showing the levels of financial aggregates are not adjusted for series breaks.