Biz talk

Liquidity surge to taper

The drop seen in loans in the second half will end the liquidity surge that has pushed up asset prices, Australian investment bank Macquarie Group said in a report. Most of the money has been saved in banks, implying that the rise in asset markets has so far been fuelled by credit. But this could change. Real interest rates are set to fall in the coming months as CPI turns positive, potentially pushing savings out of the banks' back into asset markets, it said.

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