The economy is still affected by the pandemic, and yet some things remain normal – rate rises make it more expensive to take out a loan and cool the housing market. The latest home loan figures should provide the Reserve Bank of Australia with enough cause to hold off on raising the cash rate next month.
To gauge the impact of the pandemic on our economy you could do worse than look at what Australians are borrowing money for when they take out a personal loan. Prior to the pandemic, Australians were about as likely to take out loans for holidays and travel as they were for furniture and household goods. But the pandemic changed all that and it has in no way returned, and perhaps may not for some time:
