Australia & New Zealand Economics

Australia & New Zealand Chart Book

20 December, 2018

Tighter credit conditions will weigh on growth

The latest NAB survey showed that firms are facing the largest difficulties getting finance since 2012, which suggests that credit growth may slow sharply. (See Chart 1.) That may be a reflection of higher funding costs for banks as well as the threat of additional lending restrictions from the Royal Commission. We have been arguing that tighter credit conditions could transform the current housing downturn into a recession or even a financial crisis. To be sure, other surveys suggest that lending

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