Consumer Spending Rises Like Never Before

After a boom in discretionary spending, it was expected by most economists and forecasters that consumption would slow in the second half of this year. That hasn't materialized due to obviously a strong labor market and larger savings buffers amongst households from COVID related fiscal and monetary stimulus. And so we've continued to spend those savings reserves or also pretty much at full employment. Now, basically because of that, the RBA has had to go harder. It's now believed that increased costs in household debt and higher interest repayments will play the most important role in reducing household spending less. If we stop that, we're obviously going to put less pressure on the RBA in terms of having to lift

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