, analysts say it is still early days in the mortgage lending slowdown, which has occurred as house prices have fallen and banks have cut how much they will lend.
“The RBA is quickly removing ultra-easy monetary policy, on the way to a contractionary stance, to fight a significant inflation challenge. The tightening of policy will reduce demand for credit – across households and, in turn, businesses,” he said in a note.Some investment houses such as Jarden expect annual housing credit growth will fall to about a third of its current pace by late year, while the Commonwealth Bank said it expects housing credit growth to slow to 4 per cent next year.
“These rates are not that expensive. They are a long way below where interest rates have been over the last 20 or 30 years,” Gluskie said. “Going into this tightening cycle, unemployment is so much lower than it was in previous cycles,” Dive said.
clancyyeates Inflation will be rampant unless rates go up harder
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