With the cash rate at a 15-year high, consumer confidence has tanked – while household spending is still growing
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Interest rates have risen to 15-year highs and are pushing up mortgage default risks – but household spending is still growing.
Economists say the surprising result shows this year’s four rate hikes have not yet fully hit the economy and may be less effective at fighting inflation than they used to be. If true, that could mean more interest rate rises are on the way.
