With interest rates rising almost everywhere, including Australia, people have begun tightening their purse strings as best they can.
The impact of interest rate rises will hit consumers harder in Australia compared to some of our global peers. In the short term, this is negative for consumer spending in Australia but in the medium term it could be positive for the economy because it should mean that the RBA does not need to raise interest rates as much to get demand and, therefore inflation to slow.
