Are Households Really Splashing The Cash?

Data today reinforces our view of more cash rate hikes are in the wind in Australia, as household spending data suggests households are just fine. Today we look at the data, highlight some issues with the interpretation, and consider that case for more hikes, adding to the pressure on some households. My base case is for one more rate hike this year. One big question which we return to often is the financial status of households. Australia unfortunately does a pretty bad job of current state analysis, preferring to rely on older data from the HILDA series, which can be quite […]