Domestic credit lending has been, and continues to be, extremely strong.
Much of the credit growth shows up here. Homes – buying, building, borrowing, which you could say is part of our national pastime.
Both by-number (above) and by value (below) were very strong.
Hence why these will rise, by quite a bit.
Good near term implications for the banks, and financials more broadly. Longer run, particularly for the banks with larger resi mortgage books, we see it as a negative, with likely rising BDD’s.
So, a trade to be made, but a difficult one to time.
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