29 May 2010

Household borrowing edging back up

6:26 pm on 29 May 2010

Household borrowing rose slightly in April, as demand for mortgages grew but demand for personal loans continued to fall.

Figures from the Reserve Bank show household borrowing rose 0.2% on the previous month to $180.3 million.

Housing-related borrowing was 3% higher than in the same month last year, with consumer borrowing falling by about the same amount.

Total borrowing rose 2.7% during the year.

Deutsche Bank chief economist Darren Gibbs says borrowing remains subdued as households continue to try to reduce debt.