Business credit growth outstrips new housing loans in October as borrowers continue switch to fixed mortgages from floating ones.
The data, posted on the central bank’s website on Friday afternoon, shows business debt up NZ$731 million in October, or about 0.9%, to NZ$78.588 billion. Housing loans grew NZ$644 million, or about 0.4%, to NZ$176.199 billion. Business credit growth also outstripped new residential mortgage lending in September, the first month this had happened since April.
The sector credit data also shows agriculture debt down NZ$326 million month-on-month in October to NZ$49.426 billion, and consumer debt up NZ$101 million to NZ$13.112 billion.
Combining the increases and fall from across all four sectors covered by the sector credit figures, total debt rose by NZ$1.15 billion in October. Year-on-year agriculture sector debt rose 4.4% to the end of October, business credit increased 4.1%, housing loans lifted 2.8%, and consumer debt was up 1.3%.
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