STUART THEOBALD: Loose monetary policy eases credit access for the rich, but squeezes the poor
Instead of rising as consumers are attracted by lower pricing, volumes among unsecured lenders are falling
The record low interest rates, which were confirmed by the Reserve Bank’s monetary policy committee (MPC) last week, are highlighting odd features of the financial system. One is that loose monetary conditions mean access to credit becomes cheaper and easier if you are rich, but harder if you are poor.
To see that, consider how unsecured lenders are reacting to low rates. Rather than boosting volumes as consumers are attracted by lower pricing, volumes are falling...