The RBA keeps hiking interest rates – but are the rate rises actually working?

Shoppers in Adelaide’s Rundle Mall. Economists say increased household spending shows that Australia’s four interest rate rises this year have not yet fully hit the economy. Photograph: Ian Dagnall/Alamy

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.