The shadow of debt hangs over credit growth

Low interest rates are supporting lending activity to households and businesses, but growth has been subdued, as high levels of existing debt continue to weigh on credit expansion.

Housing speculation continues to drive credit growth across the country. But the overall response to low interest rates has been relatively subdued, reflecting the high level of existing debt and the fact that many households and businesses remain fairly cautious.

Housing credit rose by 0.6 per cent in June, to be 6.4 per cent higher over the year. Growth continues to be led by investors, with investor housing credit rising by 8.7 per cent over the year -- its fastest pace in six years.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles