In November, annual mortgage credit growth slowed to its lowest rate since August 2015.
ASB economist Kim Mundy said business credit lifted sharply in November, perhaps highlighting the recent fall in recent business confidence measures was a "knee-jerk" reaction to the change in Government.
Confidence was still low and there was a chance business credit growth would moderate in the short-term from November’s elevated pace.
The Reserve Bank figures showed mortgage credit in November grew by $977million and grew 6.2% annually. Household credit grew by $1.16billion and grew 6.2% annually. Business credit fell $110million in November but still grew 7.9% annually and agricultural credit in the month was $29million for 2.1% annual growth.
Ms Mundy said ASB seasonally adjusted estimates suggested a 0.4% monthly increase in mortgage credit.
"This continued slowing is no surprise, given the still-soft housing market. However, the pace of slowing is falling, reflecting the recent signs the property market may be stabilising at low activity levels."
Consumer credit growth took a breather in November and the annual growth rate eased to 7.2%, still well above recent averages.
Agricultural credit fell to its lowest level since April 2014.A focus on debt repayments, coupled with an air of caution following recent dairy prices, might explain the soft result.
With forecast milk payments now back above break-even, Ms Mundy expected to see a switch to credit-driven investment next year.
Business credit growth at 7.9% was a 13-month high.
