However, making it attractive enough could also involve upward pressures in real wages that would trigger renewed price pressures, undermining the expansion. Thus, there would seem to be emerging constraints on potential labor input. Even before we reach the ultimate limit of sustainable labor supply growth, the economy’s ability to expand employment at the recent rate should rapidly diminish.
So customers who are actively looking around at what's on offer, are able to take advantage of the strong competition among lenders that is focused squarely on the ‘front book’. Meanwhile, interest rates on fixed-rate housing loans have also declined significantly over recent months. Although housing credit growth declined further in June, approvals for new loans increased.