Business demand for credit has slumped with 7 per cent fewer applications in the March quarter than for the same quarter last year. Veda Advantage said that the decline in enquiries was the largest fall in the two years that they have been monitoring business data. AMP Capital's chief economist Shane Oliver said that reduced investment by businesses is expected at the current stage of the cycle while interest rates are high and confidence levels have dropped. Mr Oliver sees the data as evidence that the Reserve Bank's action on interest rates is working and that rates will not have to be raised again.
