Australian Private Sector Credit topped economists’ expectations, adding 0.5 in May percent to mark the sixth consecutive increase and matching the largest one since January 2009. Loans to buy houses lead the gauge higher, rising 0.7 percent. Separately, the Housing Industry Association (HIA) reported that New Home Sales fell 6.4 percent over the same period – the largest drawdown in nearly two years. On balance, the figures present a conflicting assessment of the impact the central bank’s tightening campaign has had on the real estate market, offering little actionable information to direct monetary policy expectations in the near term. As it stands, a Credit Suisse gauge of traders’ expectations shows markets are pricing in no further rate hikes for the next 12 months.
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