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 business and government deposits.
Source: WSJ
