The Household Savings Rate

The long run savings rate, the proportion or income that we save in a given period of time, is only about 6% give or take. Now down to 3.7%, four from 4.4 I think the last time around. It does feel to me like we're almost at that point. The RBA has had more work than usual because just starting with 20% of savings during COVID, they have a very long slack to take up for them really started having an impact. We've never worked through a recession before and it's incredibly scary.