Shoppers are still out spending with gusto. It is something Reserve Bank governor Philip Lowe hoped would have begun to slow as he ploughs on with sharp interest rate increases in an attempt to stomp on inflation, with a fifth rise expected on Tuesday.
Rate rises are a blunt tool designed to cool demand. It has certainly happened in the housing market where property prices are falling and big home loans taken out in good faith by buyers, when rates were at 50-year lows, now soak up so much more of their household income.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club. Connect with Carrie on Twitter. Email Carrie at carrie.lafrenz@afr.com
