Original article by Michael Read
The Australian Financial Review – Page: 3 : 28-Aug-24

The Reserve Bank of Australia has estimated that the nation’s households had amassed excess savings of about $300bn during the COVID-19 pandemic. However, National Australia Bank believes that this figure was about $200bn. Meanwhile, research from Yarra Capital Management suggests that households had most likely exhausted these pandemic-era savings by March 2024. Economists are now speculating as to whether consumers will opt to spend or save the additional income from the stage-three tax cuts that took effect on 1 July. Too much spending could force the RBA to leave the cash rate on hold for longer than expected.

CORPORATES
RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, YARRA CAPITAL MANAGEMENT