Summary
Household and business borrowers continue to display a high level of resilience overall, with many
well placed to weather a downturn should it occur. It is important that lending standards remain
sound so that this resilience is not undermined.
- Cash flow pressures eased a little over the past year as inflation and interest rates
have declined. The share of mortgagors in severe financial stress – where
mortgage payments and spending on essentials exceeds their income – remains small and has
declined further. Ongoing strength in the labour market and established housing market has helped
to…