A growing number of loans for business and investment over the past year show low interest rates are boosting more than just the housing sector.
Lending finance figures from the Australian Bureau of Statistics show commercial lending - loans for business or investment purposes - rose 9.6 per cent in the year to February, despite having fallen one per cent in the month.
Meanwhile, home loans for owner occupiers rose by 0.5 per cent in February to be 8.7 per cent higher over the year, the Australian Bureau of Statistics found.
Commonwealth Bank senior economist Michael Workman said the figures showed low interest rates were having an impact.
But commercial lending would need to lift further this year to help boost economic growth, he said.
"Low interest rates do work," Mr Workman said.
"Even lower interest rates will boost housing and commercial lending."
Commonwealth Bank expects another rate cut by the Reserve Bank in May.
Mr Workman said the parts of commercial finance showing the strongest reaction to low rates were connected to property and construction activity, with "signs of life" in other sectors too.
"Recent comments from the RBA on the business credit pick up supports the view that business investment, outside of the mining sector, is picking up," he said.
Meanwhile, the National Australia Bank monthly business survey on Tuesday showed business conditions lifted from two to an above-average six points in March - one of its strongest results in years.
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