Rising asset prices in the face of credit constraints

03 February 2020

By guest contributor Ken Atchison, CEO, Atchison Consultants

 

    Despite very low official interest rates at 0.75%, lending for owner-occupied housing is the only sector experiencing material growth. Growth in investor loans remains negative while business lending by banks is growing at a very low rate. Additionally, any growth is in lending for large businesses and lending for small businesses is not growing. In aggregate, money growth is very slow. This means that the reductions in interest...

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