Aussie households deleverage at record rate

Yesterday’s private sector credit data from the Reserve Bank of Australia (RBA) revealed that the stock of personal credit, which was already in terminal decline, collapsed by 10.2% in the year to May – the biggest plunge in recorded history:

As shown above, this decline in personal credit growth easily exceeds the troughs of the GFC (-7.8%) and the early 1990s recession (-6.0%).

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