Westpac’s February Red Book is out and shows some interesting results following the two rate cuts. For me the most significant chart is the following:
That’s a fair drop in the appeal of straight savings but only a commensurate rise in the appeal of paying down debt. Shares and houses very much still on the nose and this despite an ongoing rise in the “time to buy a dwelling” component. This is a structural shift towards traditional savings illustrated.
The excellent Red Book is below: