Personal finance commitments have collapsed:
And most tellingly, growth in the stock of mortgage credit outstanding (mortgage growth) has flatlined as new mortgage finance commitments (housing finance growth) has soared:
This should be viewed as a harbinger for the Morrison Government’s tax cuts, with Aussie households likely to save the additional disposable income rather than saving it.
Accordingly, tax cuts are unlikely to have the stimulatory effect to the economy that the Government is hoping for.
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