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NZ household borrowing rises in May - cenbank
Reuters - Monday, June 29
WELLINGTON, June 29 - New Zealand household borrowing rose in May, the central bank said on Monday, but consumers remained cautious in the face of a deep and prolonged recession.
The Reserve Bank of New Zealand reported that seasonally adjusted total household borrowing rose 0.4 percent to NZ$176.5 billion last month, after a 0.2 percent rise in April.
Consumer spending has fallen sharply over the past year hit first by high interest rates and soaring food and petrol costs, and then by the world-wide recession which emerged in the wake of the global financial crisis.
New Zealand has also been in recession since the first half of 2008, hitting the previously rampant housing market and commodity industries.
In response, the RBNZ has cut rates by 575 basis points to a record low 2.50 percent, some of which has flowed through to bank lending rates.
Household claims were 2.6 percent ahead of the same month a year ago. The full data is available on the Reserve Bank's Website, www.rbnz.govt.nz.
The data showed that housing-related borrowing rose 2.9 percent on a year ago, but consumer borrowing was down 1.3 percent.
The central bank also released details of its foreign exchange dealings for May, showing it sold NZ$3 million during the month, after selling NZ$2 million in April.
The data also showed the RBNZ's net open currency position, which includes revaluations, was NZ$358 million lower at NZ$3.85 billion. The central bank's foreign intervention capacity was down NZ$1.2 billion to NZ$11.69 billion.
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