Kiwis (Aussies) are borrowing like drunken sailors

Friday, 1 July 2016

Yesterday, the RBNZ released its monthly credit aggregates data, which showed that household borrowing hit an annual growth rate of 8.1% in May – the highest level since June 2008 just prior to the onset of the Global Financial Crisis (GFC):

Most of this growth in debt was driven by mortgages, which grew by 8.5% in the year to May 2016 – also the highest level since June 2008:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.