Financial Aggregates July 2003

Total credit provided to the private sector by financial intermediaries rose by 1.7 per cent over July 2003, following a rise of 1.2 per cent over June. Over the year to July, total credit rose by 13.6 per cent.

M3 increased by 0.2 per cent and broad money rose by 0.5 per cent over July. Over the year to July, M3 increased by 12.1 per cent and broad money rose by 11.4 per cent.

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

The annual re-estimation of seasonal factors by the ABS has been undertaken, and the new seasonal factors have been incorporated in the figures published in this Media Release. This has led to revisions to the historical seasonally adjusted levels and growth rates of the financial aggregates. In addition, the resubmission of data by financial intermediaries and the revision of cash management trust data by the ABS has led to further revisions to the historical levels and growth rates of the financial aggregates.

From July, the financial aggregates have also been calculated on the basis of revised APRA reporting forms. These changes have resulted in a significant break in the level of business credit, and consequently total credit, between June and July, though the growth rates published in this Media Release incorporate adjustments to these series to take account of the changed reporting requirements. Nevertheless, there may be some increased volatility in growth rates, particularly for business credit.

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