Household loan arrears climb to a record 5.8%
Consumer delinquency hit a series high in July as the central bank weighs curbs on credit.
The share of household loans in arrears rose to 5.8% in July, the highest reading in the central bank's series.
The number sits awkwardly next to record-low unemployment. Households are employed, but they are also stretched by years of double-digit borrowing costs, and the delinquency rate is where that strain shows up first.
The central bank is reported to be studying measures to curb credit growth, which would be an unusual move to make in the middle of an easing cycle. Lower rates help borrowers refinance, but they also risk feeding the very credit expansion that is producing the arrears.
This is the data point most likely to shape the consumer-facing side of policy in the coming months.