Household borrowing has soared over recent months, largely in the form of mortgages. But this boom is probably nearing an end. Restrictions on property purchases have been reintroduced in many cities as economic jitters have faded and concerns about price rises have intensified. Property sales are now slowing. Despite the surge, household borrowing accounted for less than a third of the increase in overall credit over the past year. Still, without this support, the slowdown in total credit growth, which has been very gradual over recent months, will soon become more marked.
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