Private sector credit demand grew by +5.0% y/y in June, unchanged from May’s reading. The latest print outperformed Bloomberg consensus estimates of +4.4% y/y.

There were no significant changes in corporate or household credit demand in June, resulting in an unchanged headline result.

• Growth in corporate credit demand slowed marginally in June  (+6.6% y/y from +6.7% y/y in May), mainly due to a further contraction in ‘investments’ (-2.8% y/y from -0.5% y/y in May).
• The slowdown in corporate credit demand was offset by a marginal improvement in household credit demand (+3.1% y/y from +3.0% y/y in May), in turn driven by slightly higher ‘unsecured borrowing’ (+0.1% y/y from -0.4% y/y in May). More broadly, household credit demand growth has been languishing below 4.0% y/y since February 2024.

Finally, M3 money supply growth accelerated to +7.3% y/y in June from 6.9% y/y in May, marking the third straight month of faster growth and supporting the outlook for rising domestic inflation, i.e. the beneficial current low inflation is indeed starting to bottom out, and numerous data points suggest pressures are for an acceleration going forward.