wage stagnation monetary policy
(Image: Getty)

With demand key to Australia's recovery -- at least according to the Reserve Bank -- this week provided some good news ahead of the budget.

Australian Bureau of Statistics data showed new loan commitments in July rose a record 8.9% on June -- but also up more than a 11% on July 2019. Much of the rise was in owner-occupier loans, which rose 10.7%; first-home buyer owner-occupier commitments jumped 14.4%.

Investor loans rose 3.5% compared to the previous month but were still down 5.1% over the year. Investor lending has been dead for more than a year, but for owner-occupiers, there's new life in the midst of a recession.