Total lending falls for first time since 92

Total lending to business and private individuals fell 0.3 per cent in December, well below market expectations of a 0.5 per cent rise. It is the first fall in lending since 1992 and raises the chances of a 1.0 per cent cut in official interest rates by the RBA this week. Lending growth for the 2008 year slowed to 6.7 per cent, the slowest since 1994. Despite the increase in the first home buyers grant, lending to home buyers grew just 0.4 per cent from November. Personal credit declined 1.1 per cent.

Source: The Age