Homebuyers continue to prop up credit demand | Business Breaking News | News.com.au

Overall credit demand fell 0.2 per cent in September, dragging the annual growth rate down to 1.7 per cent, and having been running in double figures a year earlier, Reserve Bank of Australia data showed on Friday.

Such weakness was evident even before the central bank raised the cash rate in October.

Demand by owner-occupier home loans grew 0.8 per cent in September, lifting the annual rate to 9.7 per cent, it highest rate since August 2008.

However, other personal loans fell 0.2 per cent in September, to be 5.6 per cent lower than a year earlier, while business credit tumbled 1.3 per cent in the month to be down 4.6 per cent in the year to September.