Oz home-loan approvals fall 3.7%

Australia's home-loan approvals fell almost twice as much as economists forecast in June as the highest interest rates in 12 years eroded demand for property.

The number of loans granted to build or buy homes and apartments dropped 3.7 percent from May, when they slumped a revised 6.9 percent, the statistics bureau said in Sydney. The median estimate of 20 economists surveyed by Bloomberg News was for a 2 percent decline.

Decreased lending adds to signs the $1 trillion economy is cooling and reinforces speculation the Reserve Bank of Australia may cut interest rates as soon as next month. Governor Glenn Stevens left his benchmark unchanged yesterday and signaled policy makers may lower borrowing costs for the first time in seven years as slower economic growth cools inflation.