Australian businesses dip into savings in high interest rate environment

Consumers and businesses are feeling the pressure of higher interest rates, according to the Commonwealth Bank. (Image: Supplied)

The Wall Street Journal

Tue, 09 Jul 2024

Sydney — Australian businesses are dipping into savings to cover day-to-day running costs and repay debts amid higher-for-longer rates, but arrears remain low for now, the head of business banking at the country’s largest lender said.Like households, businesses built up cash buffers during the pandemic, and strong post-covid demand supported business profitability. Recent Australian regulator data cited by UBS showed overall bank deposits fell in May, with an uptick in household savings being more than offset by contracting bus...

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