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Business loan demand spikes, keeping inflation fears alive

Commonwealth Bank chief Matt Comyn says the strong job market is driving “robust” demand for corporate loans and economists warned strong business investment could push up prices for labour and equipment in the short term.

CBA said in a market update on Thursday its lending to businesses was up by $2.7 billion for the three months to the end of March, faster than the average of its rivals and more than in home loans. “We are seeing continuing resilience,” he said.

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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
Lucas Baird is a journalist based in The Australian Financial Review's Sydney office. Connect with Lucas on Twitter. Email Lucas at lucas.baird@afr.com

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    Original URL: https://www.afr.com/companies/financial-services/business-loan-demand-spikes-keeping-inflation-fears-alive-20240509-p5jb6v