Spending binge reinforces case for RBA to hike

With Australian households continuing to loosen their purse strings, private consumption is almost certain to have recorded a bumper gain last quarter. Moreover, as firms report increasingly severe labour shortages, the case for the RBA to tighten policy remains intact. Elsewhere, RBNZ Governor Breman’s decision to sign a letter of support for US Fed Chair Powell earned her a reprimand from Foreign Minister Peters. However, despite these latest frictions, the government will steer clear of impeding the Bank’s autonomy.