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Speaker 1: Things might be looking up a little bit on the

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Speaker 1: old credit front. Centrics data out this morning. Keith McLaughlan is,

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Speaker 1: of course Centrics Managing director. In his back whether it's Keith,

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Speaker 1: very good morning to you. You see whether this or not?

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Speaker 1: Helle try that yes, yep, with your apologies. So credit

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Speaker 1: demand is up. I always I probably ask you the

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Speaker 1: same question every time. Is that good because we're bullish

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Speaker 1: or bad because we're desperate?

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Speaker 2: It's good because confidence is command back into the marketplace,

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Speaker 2: will borrow money when they can afford to repay it.

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Speaker 1: And so that dubtails him with a strong rise and

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Speaker 1: new mortgages. That's life in the market, I suppose.

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Speaker 2: So that's a reflection of what's happening in the property market.

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Speaker 2: But it's more activity and that leads to credit demand

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Speaker 2: for mortgages and home lending. And let's going through our numbers.

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Speaker 1: And does that dubtail generally credit demand? So there's a

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Speaker 1: bit of personal, there's a bit of card, there's a

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Speaker 1: bit of house or are they all very individual?

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Speaker 2: So pretty much individual? I think again the line actively

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Speaker 2: really is consuming the confidence. If people feel good, they'll

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Speaker 2: they'll trade up their house, they'll do renovations, I'll maybe

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Speaker 2: look at buying car, and then you have the standard

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Speaker 2: non discretionary credit, which things like a power accounting, your

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Speaker 2: phone account, where people move from one supply to the other.

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Speaker 2: So it's when we see the auto loans going up,

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Speaker 2: when we see the home loan leadingly going up, that's

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Speaker 2: when you really know that people are starting to feel

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Speaker 2: more confident about the marketplace.

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Speaker 1: Okay, the areas are down, and they've been down as

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Speaker 1: far as I'm reading for a fourth month and a Right,

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Speaker 1: that's a trend, isn't it.

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Speaker 2: Yeah, yeah, four months, that is a trend. That's really

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Speaker 2: good to see. And again down month and month. So yeah,

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Speaker 2: we're starting to see household budgets really starting to be bounced.

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Speaker 2: And I think that's to an extend element of the

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Speaker 2: dropping of the interest rates starting to flow through into

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Speaker 2: household budgets.

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Speaker 1: Are we coming right here, Keith?

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Speaker 2: The numbers that I look at certainly indicate a positive trend.

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Speaker 2: I think we're coming right. I think you know, there

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Speaker 2: are certain households who are still struggling, but households that

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Speaker 2: weren't hit by those interest rates in the to limit

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Speaker 2: to the same extent are now feeling more confident a

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Speaker 2: going out spending money and hopefully that will flow into

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Speaker 2: the small business sector in New Zealand and give them

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Speaker 2: a kick along, which is really needed at the moment.

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Speaker 1: Don't agree more. Which brings us to company liquidations up

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Speaker 1: thirty percent year on year. Where are we in the cycle,

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Speaker 1: given they tend to trail a bit.

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Speaker 2: Well, we've noticed that our company defaults or areas have

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Speaker 2: dropped again for the last three months, so we've seen

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Speaker 2: the early science there that businesses are starting to stabilize

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Speaker 2: and that they are starting to make their payments. When

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Speaker 2: you look at things like severe consumer defaults or company liquidations,

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Speaker 2: that's well after the evening, so there is a long

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Speaker 2: tail as far as that's concerned. So without a doubt,

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Speaker 2: we are expecting to see company liquidations plata and perhaps

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Speaker 2: settle back down to normality, similarly with consumer serious areas.

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Speaker 1: Geez, I'm almost encouraged now, Keith.

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Speaker 2: Well, I'm looking at these numbers, I mean them for

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Speaker 2: a couple of years now, and this is probably the

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Speaker 2: most consistent positive trend that we've seen.

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Speaker 1: So yeah, it's good, fantastic, Good to have you on

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Speaker 1: the program, then, Keith mcnot that it's not always, but

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Speaker 1: Keith McLaughlin, Centric's managing director with us this morning. For

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