March 2009

The amount of credit being supplied to the rural sector is still increasing at a high pace - but has now started to slow dramatically.

This is still faster growth than the rest of the economy. Like general business credit which has started to fall, the growth of credit to agriculture in February slowed fast, although it has now pushed on up well through the $40 billion level.

These are the signs of an bubble popping, as commercial prospects still look rather grim, even though dairy prices may have bottomed out.

For more detailed data, see www.interest.co.nz

for more perspectives, see

- Exchange rates
- Commodity prices
- Farm cost indexes
- Interest rate trends
- Rural credit aggregates
- Farm sales activity
- International dairy prices

for saleyard and processor price trend graphs, see

- lamb
- beef
- deer
- velvet

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