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Personal, business finance dip

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Record low interest rates do not appear to be stoking interest in cheap credit, with personal and commercial finance both falling in February, according to official data from the Australian Bureau of Statistics.

Personal lending commitments fell a seasonally adjusted 0.2 per cent to $8.75 billion in the month.

The result compares to an upwardly revised $8.76bn in January.

The data showed total business finance commitments fell a seasonally adjusted 1 per cent in the month to $43.55bn, which compares to an upwardly revised $43.97bn in January.

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Low interest rates did seem to attract more consumers into mortgage finance, with housing finance for owner occupation lifting 0.5 per cent to $18.35bn in February.

Last week, the RBA decided to hold the official cash rate at a record low 2.25 per cent.

Economists expect, and financial markets have already fully priced in, a cut to the cash rate at the RBA's May meeting. The central bank is tipped to lower the cash rate to a fresh record low of 2 per cent. 

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ABS data shows record low interest rates fail to stoke interest in cheap credit in February.

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