Despite three interest rate hikes this year, consumer sentiment tracking near historical lows, and the negative headlines around the property market, household spending in aggregate remains robust. On Tuesday, the Australian Bureau of Statistics (ABS) released its household spending indicator for June, which surprised to the upside, growing by 0.8% in June and by 6.0% year-over-year. When read alongside the unexpectedly strong labour force figures for June, it suggests that Australian households are both employed and continue to spend freely. In other words, while further rate hikes are off the agenda for now, so too are rate cuts. AdvertisementExpect a hawkish hold from the RBA at this month’s monetary policy meeting.