At times you have to wonder if members of the Reserve Bank executive and board have met anyone who actually lives in a typical Australians household, because, if you listen to the utterances of the new governor of the Reserve Bank and read the minutes of the RBA board meeting you would think households are going tickety-boo.
On Monday the latest retail trade figures for October were released. This was the month prior to the Reserve Bank raising rates because it was worried there was too much demand in the economy. So, you would expect, given the RBA is across all the details and has its finger on the pulse, that it must have had reason to think retail spending was still going solidly, if not strongly.
