Household borrowing rampant
There is little evidence that the Reserve Bank has broken the back of the housing market boom, with households still borrowing.
Wednesday, August 10th 2005, 7:05AM
by The Landlord
Reserve Bank figures showed that borrowing rose more than 15 per cent in the June year, with household debt up about $16 billion to about $112 billion.Last week the Reserve Bank said the housing market represented "an upside risk for the future path of household spending and inflation".
The blistering rate of growth in household borrowing has been steady for the past nine months around 15 per cent.
The racking up of debt was "frothy", according to Bank of New Zealand economists, and was aligned with continuing strength in the housing market.
But households were not the only big borrowers.
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