Summary
Households and businesses are generally well placed to weather higher interest payments and cost
pressures. While the risk of a more material adverse global shock has increased
over recent weeks, the strong financial position of most borrowers means that the household and business
sectors are unlikely to be a source of systemic instability. Nevertheless, with domestic credit growth
accelerating over the past year and global stability risks elevated, it is important that lending
standards remain prudent so that household and business resilience is not undermined.
- The financial position of most households and businesses is strong…