NZ mortgage growth softens as macro-prudential bites

By Leith van Onselen

The RBNZ released its monthly credit aggregates data, which showed New Zealand household borrowing continuing to retrace from September’s cyclical high, recording annual growth of 8.7% in January:

Most of New Zealand’s household debt is driven by mortgages, which has also retraced slightly to 9.0% in the year to January 2017:

Separate data from the RBNZ showed that Auckland investors’ share of mortgages were 40% in January – a significant moderation from the 48% peak share recorded in June 2016:

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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.