Credit bureau Equifax has released its latest New Zealand consumer credit demand insights report, for November.
Equifax says the key features of the report are;
- Consumer Credit demand continues to strengthen in all portfolios.
- Of all portfolios, mortgage demand remains the strongest - well up on pre-COVID levels.
- Commercial credit demand is consistently back at 2019 levels.
- Overall repayment history arrears remain well down on pre-COVID levels.
- Credit card arrears have increased for the first time since May 2020. There is a slight increase in repayment arrears 30 days past due.
- Mortgage payment deferrals are down compared with the prior month, now less than 4% of total accounts.
- 96% of all accounts previously in mortgage deferral are up to date.
9 Comments
OECD report current update :NZ- Household saving ratio, net(% of disposable income). 1.9% one of the lowest in OECD countries. Better hope rates and unemployment remain low for or a very long time. Either way constraints on further consumption moving forward stagnant at best with a long term drag on economic activity for years to come. And need I remind you were are close to zero bound.
Thank to Orr, if we are lucky we shall see a Japan scenario for the next 10 years at least, with anaemic growth and extremely low inflation. If we are not so lucky, in the medium term we could well get an implosion of asset prices (housing in particular).
Yes we are different to Japan, but while we have positives when compared to them, we also have negatives. And we are pursuing the same stupid, reckless, shortsighted monetary policy.
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