Households have drawn down on their bank account savings for the first time since the last major interest rate tightening cycle in 2007, as higher borrowing costs also squeeze retail spending.
Despite pockets of the economy being under financial stress, the RBA is conscious of other strengths that are keeping pressure on inflation and interest rates.
South Korea joined the club of central banks shifting to smaller interest rate increases, in contrast to a worried RBNZ that inflation will stay longer.